State of Michigan

2026-2027 Michigan Economic Outlook

Updated October 29, 2025

State (Michigan) Forecast

The Michigan economy is heavily exposed to global trade and manufacturing, leading to a cautious outlook.

Factors Affecting Michigan:

  • The Michigan economy is uniquely tied to the production of goods for trade, specifically light-duty vehicle manufacturing, furniture, agriculture, and trade hubs with Canada.
  • Challenges include the on-again/off-again EV transition, an aging workforce, and the impact of the slowing national economy and consumer spending.

Michigan Economic and Labor Projections:

  • Output and Income: State Gross Domestic Product (GDP) and Personal Income growth are both expected to just keep pace with inflation.
  • Employment: State employment growth is slated for moderate growth.
    • Growth in goods-producing sectors is flat.
    • Service-providing sectors are expected to generate net gains.
    • Construction is likely to weaken in 2027 but could reverse based on public infrastructure investment.

 

Updated October 29, 2025