March 22, 2000

Michigan retail sales and optimism rebound sharply

LANSING -The performance of Michigan's retail industry rebounded sharply in February, as did retailers' optimism for spring sales.

Fifty-one percent of retailers posted increased sales in February from the same month a year ago, according to the Michigan Retail Index, a joint project of the Michigan Retailers Association (MRA) and the Federal Reserve Bank of Chicago. That was up from 43 percent in January.

The Index also found that 94 percent of retailers expect sales for the next three months to equal or surpass last year's numbers. That's up from 85 percent in January and 81 percent in December.

"Michigan shoppers resumed their strong spending across the retail industry in February, consistent with national trends," said Larry Meyer, MRA's CEO.

"Michigan's consistently good economy, record low unemployment and the March payment of record profit-sharing checks to autoworkers all contributed to the rosy outlook for spring."

Jewelers, who took heart in a successful Valentine's Day, led the industry in February, with 73 percent reporting sales gains. Apparel retailers rebounded, with 55 percent recording increases. Furniture and appliance retailers remained strong, with 55 percent posting gains.

The Michigan Retailers Association is the unified voice of retailing in Michigan and the nation's largest state trade association of general merchandise retailers. MRA's more than 5,000 retail business members operate more than 12,000 stores across the state.

Note: William Strauss, Senior Economist and Economic Advisor with the Federal Reserve Bank of Chicago, can be reached at 312.322.8151.

Michigan Retail Index
February 2000 results

February Activity
(numbers in parentheses indicate January results)

Expectations for Next 3 Months
(numbers in parentheses indicate January results)

February Sales Activity & Expectations for Next Three Months, by Region
(numbers in parentheses indicate expectations for next three months)