Detroit Metropolitan Area 2023 Economic Outlook

The Detroit area economic outlook is for continued robust growth through 2023. The area is expected to see output growth of nearly 10 percent in 2022 tapering off to 7.4 percent for 2023. In real terms anticipate output growth to be just under 3 percent once subtracting inflation. Anticipate robust wage and salary growth, along with strong proprietors’ income growth to be strong contributing factors. Significant reversal of property type income is expected to pull down personal income in 2022, but we should see solid growth in personal income in 2023 of around 6.2 percent or just under 2.0 percent in inflation adjusted growth.

Detroit has experienced relatively robust employment growth over the past few years, and that growth is expected to continue through 2023. Anticipate that 2022 will end with average employment gains of around 101,000 jobs, and for another 95,000 jobs to be added in 2023. Good producing and service providing job gains are expected to be largely on par, with both adding just under 5.0 percent employment growth in 2023. This represents a tapering of goods producing employment growth, where 2021 and 2022 saw growth toping 7.0 percent for each year. Employment in durable goods manufacturing exceeds that of non-durable goods, but for 2022, we anticipate non-durable goods job growth to exceed durable goods job growth. Strong service sectors include leisure and hospitality and professional & business services. In defiance of the rest of the state, information services and financial activities are expected to remain strong in the Detroit region through 2023.

Updated January 1, 2023