Automotive Economic Indicators

Economic Activity in the Manufacturing Sector Expands for the Second Straight Month

The U.S. manufacturing sector expanded in February for the second straight month but only the third time in 40 months. “The Manufacturing PMI® registered 52.4 percent in February, a 0.2 percentage point decrease compared to the 52.6 percent recorded in January.

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) Up in February 2026

The new-vehicle sales pace in February 2026 registered at 15.8 million, lower by 1.4% compared to last year. The sales pace was up 6.3% from the previous month.

Vehicle Sales Are Up in February 2026

Sales volume in February 2026 rose 8.5% from the previous month reaching 1.2 million in sales volume in February.

Michigan Vehicle Production Decreased 1.5% in January 2026

Michigan motor vehicle production decreased in January to 137,153 units, 13.7% lower than December’s production, and 1.5% below last year’s level. Nationally, motor vehicle production increased in January to 783,741 total units, or 0.5% higher than the prior month, and 1.8% above its year ago level. From December to January, Michigan’s car production decreased from 8,506 units to 6,922, while the State’s truck production decreased from 150,505 units to 130,231.

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.