For Immediate Release
May 28, 2003

LANSING — The late arrival of spring weather and an increase in sales have Michigan retailers projecting continued improvement through mid-summer.

Retailers’ level of optimism rose to its highest point in five months during April, following an uptick in sales for the second consecutive month, according to the monthly Michigan Retail Index. The Index is a joint project of the Michigan Retailers Association (MRA) and Federal Reserve Bank of Chicago.

For the May-July period, 62 percent expect to increase sales from the same period last year, while 15 percent forecast declines and 23 percent project flat sales. The results create a seasonally adjusted outlook index of 68.9, up from 61.0 in March and the highest since November 2002.

The monthly sales performance index for April rose to its highest level in nine months. Thirty-six percent of retailers increased sales from the same month a year ago, while 50 percent experienced declines and 14 percent reported no change. The results create a seasonally adjusted performance index of 43.0, up from 39.2 in March and the best since July 2002.

"The arrows continue to move in the right direction, which is welcome news," said Larry Meyer, MRA chairman and CEO. "Although most retailers are still not seeing the kind of improvement they need, these small and steady increases are boosting their optimism for late spring and early summer."

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.