For Immediate Release

February 27, 2008

LANSING — Michigan retailers project sales growth averaging 3.3 percent for 2008 — after a slower start to the year, according to the Michigan Retail Index, a joint project of Michigan Retailers Association and the Federal Reserve Bank of Chicago.

Their forecasts follow January sales that were a significant improvement from December, but below January of 2007.

“Michigan retailers are expecting improved sales this year, with much of the growth coming after the First Quarter,” said James P. Hallan, MRA president and CEO. “They’re projecting better sales as a result of the federal economic stimulus package and some overall economic improvement.”

For January, the Index showed 37 percent of retailers increased sales over the same month last year, while 46 percent recorded declines and 17 percent saw no change. The results create a seasonally adjusted performance index of 47.5, up from 38.5 in December. A year ago January, the Index was at 50.4.

In addition, 42 percent believe their sales will increase for February–April, while 34 percent forecast declines and 24 percent project no change. The results create a seasonally adjusted outlook index of 53.4, down from 55.5 in December.

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