Automotive Economic Indicators

PMI® Expanded For the Second Consecutive Month in February 2025

The Manufacturing PMI® registered at 50.3% in February, 0.6 percentage point higher compared to the 50.9 percent reported in January according to the Institute for Supply Management® (ISM®).  According to Timothy Fiore, Chair of the Institute for Supply Management Manufacturing®, U.S. Although the PMI^® took a step back in February, it increased by four percentage points over the three previous months, with the most recent bump in January finally returning the manufacturing sector to expansion. Of the five sub indexes that directly factor into the Manufacturing PMI^®, two (Production and Supplier Deliveries) were in expansion territory, compared to four in January. Both the Employment and the New Orders indexes returned to contraction.

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 February 2025

The February SAAR increased 3.2% to 16.0 million, up from January’s 15.5 million. New light-vehicle sales were down 0.7% year over year in February with one fewer selling day.

Vehicle Sales Increased 10% In February 2025

Vehicles sales increased by 10% compared to the previous month. Vehicle sales totaled 1.25 million units in February 2025.

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 Decreased in December

Michigan motor vehicle production decreased in December to 157,665 total units. Michigan’s December production was 9.2 percent lower than November’s production and 29.9 percent above the level in December 2023. Nationally, motor vehicle production totaled 750,971 units, 7,418 units higher than the 743,553 units from a year ago. In December, Michigan’s car production was 6,981 units while the State’s truck production was 150,684 units.

Vehicle Manufacturing Employment Slightly Up in December

Michigan’s automotive manufacturing employment totaled 163,600 in December 2024, increasing slightly from the previous month.