Midwest Economy Improving

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The economy in midwestern states is doing better than the national economy. That's according to Chicago Federal Reserve Bank CEO Michael Moskow.

The economic chairman told hundreds of mid-Michigan business leaders the outlook of the Midwest economy is good. He said household incomes are steadily increasing and productivity is growing.

Moskow said the auto industry and the housing industry are improving, and if business spending (including investments in software and infrastructure) continues to grow, the economy will also improve.

Job outlook is improving, according to Moskow, but he said college grads might have a tough time finding jobs. He said they should be aggressive and proactive when looking for work.

Moskow said college universities must also be proactive and diligent when determining a budget. He said many state colleges have tight budgets, and schools like MSU should concentrate on reducing spending and increasing revenues.

MSU President Peter McPherson said he's planning to have a campus forum to discuss the university budget within the coming week. He said many departments all over campus are focused on determining where cuts should be made.

While uncertainties like a potential war with Iraq may continue to affect the stock market and other economic activity, Moskow says prospects are bright.