Comerica Bank’s Michigan Economic Activity Index

rose 4 points in January, to a level of 81 (see chart above). January’s reading is the highest Index observation since November 2008. The Index for January is up 6 percent compared to the June 2009 cyclical low.

“After plateauing for three months, our Index surged in January, with eight of nine components contributing positively,” said Dana Johnson, Chief Economist at Comerica Bank. “The January reading was driven by strong steel production and natural gas sales. Given the severe weather patterns experienced in the early part of this year, gas sales likely outpaced normal seasonal trends in February as well, which should give the upcoming Index another boost. Over the course of the year, the Index should continue to trend higher, reflecting an ongoing recovery in Michigan.”

MP: Hey, if there's an ongoing V-shaped economic recovery in Michigan, there's hope everywhere. Michigan jobs increased by 4,100 in January, and its jobless rate fell to 14.3%, the lowest since last August.