Michigan Restaurant Industry Forecast
1997 in Review



Economic growth in the East North Central region (Illinois, Indiana, Michigan, Ohio and Wisconsin) was relatively modest during 1997. Total employment increased an estimated 1.0 percent during the year ? well below the 1.6 percent gain registered on the national level. This performance ranked seventh out of the nine national regions. The moderate growth in 1997 resulted from slowdowns in the region's construction and service sectors, while the wholesale trade and manufacturing sectors improved somewhat from their 1996 performances.

Michigan registered employment gains in excess of one percent in 1997, while suffering dramatic slowdowns in the growth of its finance, insurance, and real estate (FIRE) sectors.

In spite of a relatively moderately-growing economy during 1997, consumer confidence in the East North Central region remained high. Although it grew rather slowly during the year, the region's consumer confidence index ranked fourth out of the nine regions in the third quarter of 1997.

Outlook for 1998

The region's outlook for 1998 calls for economic growth below the national average for the year, which in turn will lead to eating place sales gains less than the national average. Eating place sales in the East North Central region are expected to post sales increases of 4.5 percent during 1998 ? less than the 5.0 percent projected on the national level. A major cause of this below-average growth is the expected slow growth in population during the year. Population is projected to increase a modest 0.3 percent in 1988 ? well below the national average of 0.9 percent. In Michigan, population is expected to grow 0.4 percent.

Total employment in Michigan is expected to grow 0.8 percent in 1998 ? below the 1.4 percent increase forecast on the national level. Real personal income is forecast to advance at a 1.4 percent rate in Michigan in 1998, compared to 2.1 percent in the nation as a whole.



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