BY JESI MUNGUIA
In a conference on Friday at the State Capitol, Rick Pluta reported that job growth should accelerate in 2013. According to two U of M economists, the forecast for Michigan economy is optimistic, but they don't want to set the bar too high.
The Michigan Home Builders Association is taking a similar approach for projections of new home construction. That's one of the key sectors in economic forecasts.
Their model is projecting construction of 14 thousand to 18 thousand construction of new homes this year.
Christopher Douglas is Associate Professor of Economics at U of M-Flint, said the Michigan economy will continue to be what he calls a "micro version" of the national economy.
"So I think for the National economy you're going to see fairly modest growth maybe on the order of 2 percent. Fairly modest job creation maybe 150 thousand new jobs per month and you'll see the unemployment rate come down as a result of accommodation of new job creation labor force exit, retirement. I kinda think that's what's going to happen to Michigan too." Douglas said.
Douglas said some of the key indicators for 2013 are the fiscal cliff negotiations, the outcome of the European crisis and the middle east and even the weather. He said the U.S. economy is extremely sensitive at this time to external shocks.