LANSING – Michigan retailers’ sales fell along with the temperatures during February, according to the Michigan Retail Index, a joint project of Michigan Retailers Association (MRA) and the Federal Reserve Bank of Chicago.
The severe cold weather also pushed up retailers’ sales forecasts for spring.
“Last month was one of the coldest Februarys on record in Michigan and the result was a significant decrease in sales,” said James P. Hallan, MRA president and CEO. “Our monthly performance index plummeted more than 18 points as the thermometer fell below zero repeatedly.”
“The good news,” he added, “is that retailers expect a strong spring as consumers shake off another harsh winter.”
The February monthly survey of MRA members showed 31 percent of retailers increased sales over the same month last year, while 52 percent recorded declines and 17 percent reported no change. The results create a seasonally adjusted performance index of 41.7, down from 60.0 in January and 66.5 in December. A year ago February the performance index stood at 49.0.
The 100-point index gauges the performance of the state’s overall retail industry, based on monthly surveys conducted by MRA and the Federal Reserve. Index values above 50 generally indicate positive activity; the higher the number, the stronger the activity.
Looking forward, 75 percent of retailers expect sales during March–May to increase over the same period last year, while 9 percent project a decrease and 16 percent no change. That puts the seasonally adjusted outlook index at 78.5, up from 76.2 in January and 68.0 in December. A year ago February the outlook index stood at 61.7.
Note: William Strauss, senior economist and economic advisor with the Federal Reserve Bank of Chicago, can be reached at 312.322.8151.
