For Immediate Release

March 26, 2008

LANSING — Most Michigan retailers believe the federal government's plan to mail “economic stimulus” checks to taxpayers this spring will be of modest help to their businesses.

The monthly Michigan Retail Index survey, a joint project of Michigan Retailers Association and the Federal Reserve Bank of Chicago, found that 53.2 percent expect it will provide some help and another 2.4 percent believe it will be a lot of help, while 44.4 percent say it won't help at all.

“Although a majority of retailers believe the tax rebates will provide some help, they don't see them as the solution to current economic problems,” said James P. Hallan, MRA president and CEO. “They're looking for modest sales growth in the latter half of the year, not the next few months.”

For February, the Index showed 29 percent of retailers increased sales over the same month last year, while 49 percent recorded declines and 22 percent saw no change. The results create a seasonally adjusted performance index of 42.2, down from 47.5 in January. A year ago February, the index was at 46.9.

Looking ahead, 39 percent believe their sales will increase for March-May, while 33 percent forecast declines and 28 percent project no change. The results create a seasonally adjusted outlook index of 50.0, down from 53.4 in January. A year ago February, the index was at 57.7.

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