For Immediate Release

August 24, 2007

LANSING —Michigan’s retail industry is showing signs of new life.

According to July’s Michigan Retail Index, a joint project of Michigan Retailers Association (MRA) and the Federal Reserve Bank of Chicago, the overall industry posted its first three-month period of positive sales performance since early 2004.

“Although July is not a key month for retailing, we are encouraged to see sales activity in positive territory for the third month in a row,” said Larry Meyer, MRA chairman and CEO. “We haven’t experienced a ‘three-peat’ on the Index in three years, and the improved performance appears to be widespread.”

The Michigan Retail Index for July showed that 46 percent increased sales over the same month last year, while 32 percent recorded declines and 13 percent saw no change. The results create a seasonally adjusted performance index of 55.3, up from 52.1 in June and 54.1 in May. It was also the best month since April 2004.

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

Retailers remain cautiously optimistic in their short-term sales forecasts.

Looking forward, 49 percent believe their sales will increase for August–October over the same period last year, while 20 percent believe their sales will decline and 20 percent expect no change. The results create a seasonally adjusted outlook index of 59.6, down from 60.9 in June but still the second-best month of the 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.

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