For Immediate Release
July 23, 2003

LANSING — Michigan retailers’ sales and forecasts both slipped slightly in June after several months of slow, steady improvement.

The Michigan Retail Index, a joint project of the Michigan Retailers Association (MRA) and Federal Reserve Bank of Chicago, showed that projections for 3rd Quarter sales leveled off after two months of rising forecasts. Similarly, overall sales performance dipped after three months of improvement.

According to the Index, 61 percent of retailers project increased 3rd Quarter sales over the same period a year ago, while 17 percent expect declines and 22 percent predict flat sales. The results create a seasonally adjusted outlook index of 68.1, down from 69.0 in May.

Thirty-seven percent of retailers increased sales in June from the same month a year ago, while 50 percent experienced declines and 13 percent reported no change. The results create a seasonally adjusted performance index of 42.6, down from 45.8 in May.

"Compared to the rest of the nation, Michigan’s sales appeared stronger in May and somewhat weaker in June. But the overall trend this year is upward, so we don’t view June's figures as a step backward," said Larry Meyer, MRA chairman and CEO.

Northern Michigan retailers posted the best results, with 47 percent recording increases. They were followed closely by Central Michigan retailers, at 45 percent.

Jewelry retailers led the industry, with 54 percent reporting increased sales.

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.