Automotive Economic Indicators

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

The U.S. manufacturing sector expanded in June for the sixth straight month following a 10-month period of contraction, registering 53.3%, a decrease of 0.7 percentage point compared to May. Five of the six largest manufacturing industries expanded in June, with Petroleum & Coal Products the exception.

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.

June’s New-Vehicle Sales Pace (SAAR) Reached Highest Point in 2026

Vehicle sales remained healthy in June, with the seasonally adjusted annual rate (SAAR) reaching 16.5 million—the highest level of 2026. Sales volume increased 2.8% from May, though June’s SAAR was still 2.7% below year-ago levels. According to Moody’s Analytics, consumer demand has remained resilient despite elevated gasoline prices and a softer labor market. However, affordability challenges, high interest rates, and moderating wage growth continue to constrain growth. At the same time, strong equity markets are supporting household wealth and helping sustain new vehicle purchases.

Vehicle Sales Remain Above Year-Ago Levels Despite Monthly Decline

Monthly vehicle sales reached 1.4 million units, decreasing 6.7% from the prior month but remaining 6.8% above year-ago levels. The annual increase suggests vehicle demand continues to outpace last year’s pace despite some monthly volatility.

Michigan Vehicle Production Increased in May 2026

Michigan motor vehicle production increased to 171,238 units in May, up 10.4% from April and 0.8% above its year-ago level. Nationally, motor vehicle production reached 904,195 units, an increase of 2.2% from the previous month but 2.3% below May 2025 levels. In Michigan, car production declined from 6,462 units in April to 5,971 in May, while truck production rose from 148,637 units to 165,267 over the same period.

Michigan’s Automotive Employment Stabilizes but Remains Below Year-Ago Levels

Michigan automotive manufacturing employment remained relatively steady through May, reaching 155,400 jobs. While employment was still 2% below year-ago levels, the annual decline has narrowed since earlier in 2026, and employment increased 0.6% from April.