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Michigan retailers project better sales in 2007Michigan retailers are forecasting improved 2007 sales, but see continued challenges throughout late winter and early spring. According to the Michigan Retail Index monthly survey, a joint project of Michigan Retailers Association (MRA) and the Federal Reserve Bank of Chicago, 57 percent expect to boost annual sales over last year’s, with more than 30 percent saying gains will top 5 percent. Retailers’ three-month outlook, however, fell more than five points on the Index, to the lowest level of optimism since last August. “January sales showed some improvement as the holiday shopping season extended into the new year, boosting confidence in the overall year ahead,” said Larry Meyer, MRA chairman and CEO. “But that optimism didn’t extend to the next few months. Retailers believe the challenges facing our state will continue and be especially tough through early spring.” The Index showed 36 percent of retailers increased sales in January over the same month last year, while 37 percent recorded declines and 22 percent saw no change. The results create a seasonally adjusted performance index of 50.4, up from 48 in December. In addition, 45 percent believe their sales will increase for February–April, while 22 percent forecast declines and 27 percent project no change. The results create a seasonally adjusted outlook index of 56.8, down from 62.2 in December. West Michigan retailers fared the best in January, with 40 percent ringing up better sales. Furniture and appliance stores led the field, with 54 percent reporting sales gains. Sales tax collections in January totaled $618.9 million, down 1.6 percent from the $629.1 million collected the previous January. Sales tax collections were not expected to rise to their January 2006 level, which was up a strong 12.7 percent. On a fiscal year-to-date basis, sales tax collections are down 2.1 percent. Complete results of this month’s Michigan Retail Index—including data on sales, inventory, prices, promotions and hiring—are available at www.retailers.com/news/retailindex.html. The website includes figures dating back to July 1994.
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