By Staff
LANSING – While most Michigan retailers say they have seen little boost in sales from the federal economic stimulus checks, slightly more rang up better sales in May and are projecting better summer sales, according to the Michigan Retail Index, a joint project of Michigan Retailers Association (MRA) and the Federal Reserve Bank of Chicago.
The number of retailers posting year-over-year gains rose in May, compared to April, although gainers remained outnumbered for the seventh consecutive month by those whose sales declined. Similarly, the number of retailers predicting improved sales for the next three months also rose by a small amount as they remained in the minority.
"There is some positive news in the May numbers, but it's still extremely tough out there for all retailers," said James P. Hallan, MRA president and CEO. "The disappointing finding is that most retailers say the economic stimulus checks aren't boosting sales. It appears that most of those checks are being spent on higher priced gasoline and food and, perhaps, paying down debt."
For May, the Index showed 38 percent of retailers increased sales over the same month last year, while 45 percent recorded declines and 17 percent saw no change. The results create a seasonally adjusted performance index of 43.4, up from 43.3 in April and the highest since January.
Looking forward, 40 percent believe their sales will increase for June-August, while 30 percent forecast declines and 30 percent project no change. The results create a seasonally adjusted outlook index of 53.0, up from 49.0 in April.
The Michigan Retailers Association is the unified voice of retailing in Michigan and the nation's largest state trade association of general merchandise retailers.