For Immediate Release
April 23, 2003

LANSING — Michigan retailers remain cautiously optimistic for sales growth in the 2nd Quarter, following a boost in overall sales performance during March—the industry’s best showing since last summer.

The findings are contained in the monthly Michigan Retail Index survey, a joint project of the Michigan Retailers Association (MRA) and Federal Reserve Bank of Chicago.

For the April-June period, 53 percent expect to increase sales from the same period last year, while 18 percent forecast declines and 29 percent project flat sales. The results create a seasonally adjusted outlook index of 61.0, virtually unchanged from 61.2 in February.

The monthly sales performance index for March rose to its highest level since last August. Thirty-four percent of retailers increased sales from the same month a year ago, while 55 percent experienced declines and 11 percent reported no change. The results create a seasonally adjusted performance index of 39.2, up from 34.3 in February and the best since 40.1 last August.

"More retailers saw sales growth in March, but they remain cautiously optimistic for 2nd Quarter performance," said Larry Meyer, MRA chairman and CEO. "Although economic uncertainties remain, the positives include the end of the war in Iraq and warmer weather that can unleash pent-up consumer demand."

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 5,800 retail business members operate more than 13,000 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.