Automotive Economic Indicators

Economic Activity in the Manufacturing Sector Contracted in August for the Sixth Consecutive Month

The Manufacturing PMI® registered at 48.7% in August, a 0.7 percentage point higher compared to the 48.0 percent reported in July according to the Institute for Supply Management® (ISM®).

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) Maintains Strong Pace in August

The new-vehicle sales pace in August was above 16 million for the second straight month and up from last year’s 15.1 million level. According to Cox Automotive, electric vehicle (EV) sales are expected to push new-vehicle sales higher in August as consumers take advantage of soon-to-expire federal tax credit.

Vehicle Sales Increased in August

Consumer demand for new vehicles remains steady with vehicle sales totaling to 1.46 million in August 2025, an increase of 5% from the previous month.

U.S. Auto Production Increased Slightly in July 2025

In July 2025, U.S. auto production amounted to 113,200 units, an increase of almost 2% year-over-year.

Michigan Vehicle Production Decreased in July

Michigan motor vehicle production decreased in July to 138,683 units, 19.9 percent lower than June’s production, and 4.6 percent higher than its year ago level. Nationally, motor vehicle production also declined in July to 767,430 total units, or 15.9 percent lower than the prior month, but above its year ago level by 8.3 percent. From June to July, Michigan’s car production declined from 9,915 units to 5,597, while the State’s truck production declined from 163,195 units to 133,086.

Vehicle Manufacturing Employment Down in July 2025

Michigan’s automotive manufacturing employment totaled 158,400 in July 2025, down 1.5% month-over-month.