For Immediate Release

July 23, 2008

LANSING — Michigan retailers’ sales and three-month forecasts both dipped in June, according to the Michigan Retail Index, a joint project of Michigan Retailers Association (MRA) and the Federal Reserve Bank of Chicago.

“While there was a small bump up in sales in April and May, most likely from the federal stimulus checks, the positive momentum wasn’t sustained in June,” said James P. Hallan, MRA president and CEO.

“Under current economic conditions, it’s no surprise that the struggling Michigan retail industry is not expecting a quick turnaround. But there’s a lot of volatility out there with gasoline prices, and the numbers can jump around from month to month.”

The number of retailers posting year-over-year gains declined in June, compared to May. Similarly, the number of retailers predicting improved sales for July–September also fell.

For June, the Index showed 34 percent of retailers increased sales over the same month last year, while 55 percent recorded declines and 11 percent saw no change. The results create a seasonally adjusted performance index of 36.3, down from 43.4 in May, lowest since March.

Looking forward, 36 percent believe their sales will increase for July–September, while 37 percent forecast declines and 27 percent project no change. The results create a seasonally adjusted outlook index of 47.9, down from 53.0 in May and the lowest since the Index was established in 1994.

More than a third of retailers also said they’re hiring fewer summer workers this year as sales lag, although 54 percent are able to maintain last year’s levels and 8 percent increased their summer jobs.

The Michigan Retailers Association is the unified voice of retailing in Michigan and the nation’s largest state trade association of general merchandise retailers.

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