U Mich Economists: State Economic Growth on Pause

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Economists from the University of Michigan say that while they believe the state’s economy “has hit a growth pause” that will last into 2026, they expect growth to return in 2027. In the recently released Michigan Economic Outlook 2026-2027, the economists project a loss of 2,000 jobs for the state in 2026, but a gain of 11,300 jobs in 2027. The improvement in 2027 payrolls is based on the projected stimulative effect of enacted tax cuts, anticipated reductions in interest rates, and “a more supportive policy mix”. The report goes into considerable detail about the impact of both federal tariff and trade policy and regulatory changes on the state’s auto industry. It notes that while some of these changes, particularly those around CAFE standards and EV credits, may be beneficial to the industry in the short term, the future direction of these federal policies is uncertain. 


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