Inflation concerns, hiring challenges still reported
Michigan Retailers Association today reports that July 2022 sales increased over June 2022.
The July Retail Index survey came in at 54.3, an increase over June’s 50.7. Fifty-nine percent (59%) of Michigan retailers reported a sales increase over June; Thirty-five percent (35%) noted a decrease, and 6% reported no change.
The 100-point Index provides a snapshot of the state’s overall retail industry. Index values above 50 generally indicate positive activity, the higher the number, the stronger the activity.
“Michigan’s retailers are reporting increases in sales from June to July, a positive trend we’d like to see continue. However, we had an increase in the number of retailers indicating that they expect their sales to decline over the next 90 days, with 31 percent of those surveyed predicting a drop in sales,” said William J. Hallan, President and CEO of the Michigan Retailers Association.
“Between now and the holidays, Michigan shoppers have the opportunity to make a choice to Buy Nearby, and we encourage them to do so,” said Hallan.
The seasonally adjusted performance Index is conducted by Michigan Retailers Association (MRA) in cooperation with the Federal Reserve Bank of Chicago’s Detroit branch.
Fifty-one percent (51%) of retailers predict their sales will continue to rise through October, but 31% said they expect their sales to decline. Eighteen percent (18%) anticipate no change. That results in a 58.5 Index rating, a large decrease over last month’s prediction Index rating of 73.0, yet still a strong indication for high sales activity over the next three months.
Michigan’s unemployment rate in July preliminarily came in at 4.3%, the same rate since April. In July 2021, Michigan’s unemployment rate was 6.2%.
The national unemployment rate dropped a notch to 3.5% compared to 3.6% in June. Last year, the national unemployment rate was 5.4%.