Automotive Economic Indicators

Manufacturing Sector Contracted in March After Two Consecutive Months of Expansion

The Manufacturing PMI® registered at 49.0% in March, 1.3 percentage point lower compared to the 50.3 percent reported in February according to the Institute for Supply Management® (ISM®).  According to Timothy Fiore, Chair of the Institute for Supply Management Manufacturing®, in March, the Manufacturing PMI^® reversed its recent momentum to register below its reading in December. Of the five sub indexes that directly factor into the Manufacturing PMI^®, two (Supplier Deliveries and Inventories) were in expansion territory, the same number as in February, when Production and Supplier Deliveries indicated growth. Slower supplier deliveries and expanded inventories in March are not considered positives for the economy: Both conditions figure to be temporary and are driven by tariff concerns, either delaying buyer/seller negotiations or advancing material deliveries that will be reversed after tariffs are deployed, leading to a drawdown of manufacturing inventory.

ISM® states a reading above 50% shows that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting. The index is based on a monthly survey of supply chain managers and measures general direction of economic trends in manufacturing and other sectors.

New-Vehicle Sales Pace (SAAR) Increased In March 2025

SAAR increased 10.97% from the previous month.  Industry experts point to the impact of tariffs and fears of price hikes driving consumers to purchase vehicles at an increased rate in March 2025.

Vehicle Sales Increased to 1.6M in March 2025

Monthly vehicle sales increased 10.1% in March. This percentage change represents 367,671 additional vehicles sold.

U.S. Auto Production Slows Heading into 2025

In January 2025, U.S. auto production amounted to 95,800 unit, a decline of 22% year-over-year.

Michigan Vehicle Production Increased in February

Michigan motor vehicle production decreased in January to 141,307 units before rebounding in February to 158,980 total units. The January production was 10.4 percent lower than December s output, while February s production increased 12.5 percent and finished 0.5 percent higher than the level in February 2024. Nationally, motor vehicle production increased in January (780,688 total units) and February (872,678 total units), but remained 65,620 units below the 938,298 total units from February a year ago.  Michigan produced 18% of the total vehicle production in the U.S. in February 2025.

Vehicle Manufacturing Employment Up 4.5% in February

Michigan’s automotive manufacturing employment totaled 164,400 in February 2025, increasing almost 5% compared to the previous month.