Automotive Economic Indicators

Economic Activity in the Manufacturing Sector Contracted in November for the Ninth Consecutive Month

The Manufacturing PMI® registered at 48.2% in November, a 0.5 percentage point higher compared to the 48.7 percent reported in October 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) Expected to Slow in the Fourth Quarter

The new-vehicle sales pace in November increased to 15.6 million, up 2% from 15.3 million in October but roughly 6% below the strong 16.5 million pace of sales last year. According to Cox Automotive, higher prices and fewer government subsidies for electric vehicles are slowing the market. Also now, with more tariffed productions replacing existing non-tariffed inventory, prices are increasing higher, leading to slower sales which may last through remainder of the year and into next year.

Vehicle Sales are Down Almost 8% Year-Over-Year in November 2025

Sales volume decreased 7.8% year-over-year to 1.3 million in November 2025.  November has 25 selling days, two fewer than last month and down one from last year, which accounts for some of the expected volume decline.

U.S. Auto Production Decreased by 15% in August

In August 2025, U.S. auto production amounted to 99,500 units, a decrease of almost 15% year-over-year.

Michigan Vehicle Production Decreased in October

Michigan motor vehicle production decreased in October to 163,286 units, 5.4 percent lower than September’s production, and 13.1 percent lower than its year ago level. Nationally, motor vehicle production decreased in October to 890,155 total units, or 4.5 percent lower than the prior month, and lower than its year ago level by 10.9 percent. From September to October, Michigan’s car production decreased from 7,436 units to 6,501, while the State’s truck production decreased from 172,132 units to 163,28.

Vehicle Manufacturing Employment Down in August 2025

Michigan’s automotive manufacturing employment totaled 160,600 in August 2025, down 4% year-over-year.