Report: Michigan economy 'stalled'
Michigan's economy stalled from July through October, according to a report today of Comerica Bank's Michigan Economic Activity Index.
The seasonally adjusted index of nine economic indicators fell two points to 87 in October after rising two points to 89 in September. The index has been stuck at 87 for three of the past four months.
"As has been the case in the national economy over the second half of the year, growth in Michigan has been sluggish and uneven," said Comerica Chief Economist Dana Johnson.
But the index, which reflects indicators such as job growth, consumer spending and service sector and manufacturing activity, remains about 23 percent above the recessionary low point of 71 that it reached in July 2009.
Despite the recent stagnation, Johnson still expects the state's economy to "make modest gains" in the new year. He has said Michigan will grow as long as the national economy keeps growing.
Department of Human Services says state's need is worst in seven decades
Department of Human Services officials say the need to help the state's poor and jobless is greater than it has been in nearly seven decades, but they're helping as many as they can with less resources.
"In this economy, we're doing more with less," said Ismael Ahmed, director of Michigan Department of Human Services. "But we're making a real positive difference."
Ahmed made his comments this morning during a news conference to give highlights of the state's welfare program this year. The conference was held at the Arab American National Museum.
Ahmed said caseworkers at the state's welfare offices are handling an average of 700 cases each, compare to 320 cases in 2002.
"It's a gigantic burden, yet our workers have struggled to help people," Ahmed said. "I talk to [[caseworkers) who have cried at their desks."
About 2 million people in Michigan are receiving some sort of public assistance, Ahmed said. That's 30 percent of the state's 10 million residents.
However, he said, there have been many accomplishments made in the system to help the poor, such as faster processing of applications for food stamps and the launch of a self-service program that allows people to apply for food stamps for their homes via internet.
