For Immediate Release

July 25, 2007

LANSING —Michigan retailers’ short-term sales forecasts inched up in June as they looked toward back-to-school shopping, according to the Michigan Retail Index, a joint project of Michigan Retailers Association (MRA) and the Federal Reserve Bank of Chicago.

“The retail industry appears cautiously optimistic about back-to-school sales. Slightly more retailers expect to do better than last year,” said Larry Meyer, MRA chairman and CEO.

The Michigan Retail Index for June showed that 50 percent believe their sales will increase for July–September over the same period last year, while 22 percent believe their sales will decline and 25 percent expect no change. The results create a seasonally adjusted outlook index of 60.9, up from 59.1 in May and the highest since December 2006.

The gauge also showed that 45 percent increased sales in June over the same month last year, while 32 percent recorded declines and 23 percent saw no change. The results create a seasonally adjusted performance index of 52.1, down from 54.1 in May and the second best of 2007.

Index values above 50 generally indicate an increase in activity for the overall industry, while values below 50 indicate a decrease.

East Michigan retailers led the state, with 50 percent boosting sales and 25 percent falling behind last year.

Electronics retailers led the industry, with75 percent reporting better June sales. General merchandise retailers followed with 67 percent.

The Michigan Retailers Association is the unified voice of retailing in Michigan and the nation’s largest state trade association of general merchandise retailers.

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