LANSING – Michigan retailers’ sales rose sharply in March, rebounding from their steep drop in February, according to the Michigan Retail Index, a joint project of Michigan Retailers Association (MRA) and the Federal Reserve Bank of Chicago.
The monthly sales index climbed more than 25 points to 66.8 in March. It had fallen more than 18 points from January to February as Michigan suffered through one of its coldest February’s on record.
“Better weather teamed up with continued ‘low’ gasoline prices and lower unemployment to help boost retail sales,” said James P. Hallan, MRA president and CEO. “Retailers are looking forward to a strong spring.”
The March monthly survey of MRA members showed 55 percent of retailers increased sales over the same month last year, while 25 percent recorded declines and 20 percent reported no change. The results create a seasonally adjusted performance index of 66.8, up from 41.7 in February and the highest level since last July. A year ago March the performance index stood at 44.8
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, 68 percent of retailers expect sales during April–June to increase over the same period last year, while 9 percent project a decrease and 23 percent no change. That puts the seasonally adjusted outlook index at 76.9, down from 78.5 in February and up from 76.2 in January. A year ago March the outlook index stood at 63.3.
Note: William Strauss, senior economist and economic advisor with the Federal Reserve Bank of Chicago, can be reached at 312.322.8151.
