Automotive Economic Indicators

Economic Activity in the Manufacturing Sector Expands for the First Time in 12 Months

The U.S. manufacturing sector expanded in January for first time in 12 months. “The Manufacturing PMI® registered 52.6 percent in January, a 4.7 percentage point increase compared to the 47.9 percent recorded in December.

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) Slows in January 2026

The new-vehicle sales pace in January 2026 registered at 14.9 million, down from 15.5 million a year ago. According to Cox Automotive, the decline is mostly due to weak passenger car sales and reduced SUV imports.

Vehicle Sales Are Slightly Up in January 2026

Sales volume in January 2026 rose 0.4% year over year to 1.14 million, but fell 23.5% compared with December.

Michigan Vehicle Production Increased in December

Michigan motor vehicle production increased in December to 159,011 units, 1.5% higher than November’s production, and 3.4% above last year’s level. Nationally, motor vehicle production decreased in December to 780,203 total units, or 2.4% lower than the prior month, but higher than its year ago level by 7.6%. From November to December, Michigan’s car production decreased from 8,539 units to 8,506, while the State’s truck production increased from 148,117 units to 150,505.

Vehicle Manufacturing Employment Down in 2025

Michigan’s automotive manufacturing employment totaled 160,400 in December 2025, down 3% year-over-year and up 1.1% from the previous month. In 2025, annual Michigan automotive manufacturing employment was down almost 4% or 6,500 jobs compared to 2024.