For Immediate Release
May 26, 2004

LANSING — Continued positive retail sales in April helped Michigan’s retail industry post its best three-month period since early 2000 while nudging up retailers’ optimism for a good summer, despite rising gasoline prices.

The Michigan Retail Index, a joint project of the Michigan Retailers Association (MRA) and Federal Reserve Bank of Chicago, found that 52 percent of retailers increased sales in April over the same month last year, while 13 percent reported as-good sales and 35 percent recorded declines. The results create a seasonally adjusted performance index of 56.7, down from 59.9 in March but the best April since 1999.

"February and March of this year were the best consecutive months rung up by Michigan retailers since the beginning of 2000, and April’s results extend the current string," said Larry Meyer, MRA chairman and CEO. "Last July marked the start of the turnaround, which continues to gain momentum. The big question is whether gas prices above $2 a gallon will cut into retail sales this summer."

Retailers’ projections for the next three months rose slightly in April. Sixty-eight percent forecast better sales for May–July over the same period last year, while 22 percent project as-good sales and 10 percent expect declines. The results create a seasonally adjusted outlook index of 72.3, up from 70.2 in March and three points ahead of April 2003.

All areas of the state recorded positive sales performance during April. Furniture and appliance retailers led the industry, with 68 percent boosting sales over last year.

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 nearly 6,000 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.