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Michigan retailers anticipate a greener springSeven of every 10 Michigan retailers expect to increase sales this spring, following their strongest February performance since 2000, according to the Michigan Retail Index, a joint project of the Michigan Retailers Association (MRA) and Federal Reserve Bank of Chicago. “Retailers’ level of optimism remains high as their sales continue to rebound,” said Larry Meyer, MRA chairman and CEO. “In February, and five of the past eight months, the Index has been above 50—meaning positive performance for the retail industry overall.” Seventy percent of Michigan retailers project better sales for March–May over the same period last year, while 19 percent project as-good sales and 11 percent expect declines. The results create a seasonally adjusted outlook index of 74.1, down from 75.7 in January, but nearly 13 points ahead of February 2003. For February, the Index found that 41 percent of retailers increased sales over last year, while 20 percent reported as-good sales and 39 percent recorded declines. The results create a seasonally adjusted performance index of 53.1, up from 49.9 in January. It’s also nearly 19 points better than February 2003 and the highest February since 2000. Central Michigan retailers are the most optimistic, with 86 percent projecting spring sales growth. They also experienced the best February sales performance, with 68 percent ringing up year-to-year gains. Sales tax revenue totaled $428.4 million in February, which was down 1.9 percent from last year’s level. However, when motor vehicle transactions are excluded, collections on taxable retail sales were up 4.6 percent in February. On a fiscal year-to-date basis, sales tax collections are down 3.1 percent. Interestingly, sales tax revenues for February 2004 are almost identical to those of two years ago ($429 million). In February 2002, however, motor vehicle transactions were trending up, while this year, revenue from motor vehicle sales is lagging and other retail sales are trending up. Complete results of this month’s
Michigan Retail Index—including data on sales, inventory, prices,
promotions and hiring
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