Economists predict Michigan’s economic news should improve rapidly the rest of the year. (See report here.)
The University of Michigan’s Research Seminar in Quantitative Economics (RSQE) says the falling number of cases, hospitalizations, and deaths due to COVID-19 plus the vaccinations are good signs.
“That’s the public health reason to be optimistic. And then there’s the fiscal policy standpoint, which is, you know, the federal government is injecting a lot of money into the economy,” said Gabe Ehrlich, Director of the RSQE.
He says people have been bringing in more money than he would have predicted.
“Personal income in Michigan was actually up last year despite the fact that so many people were losing their jobs. And that’s because of the federal income support, the checks. And then also was the big expansion in unemployment insurance,” Ehrlich explained.
The economists also expect one more COVID relief bill from the federal government. The U.S. House passed a $1.9 trillion package over the weekend.