Retailers experiencing roller coaster summer in sales numbers
Michigan Retailers Association today reports that June retail sales saw a short rise over May. Retailers’ optimism for positive sales through September is bouncing-back from lows seen in its May Retail Index.
The June Retail Index survey came in at 56.0, a much-welcomed increase over May’s 50.7. Half (50%) of Michigan retailers surveyed reported a sales increase over May. Thirty-four percent (34%) noted a decrease, and 16% 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. The seasonally adjusted performance Index is conducted by Michigan Retailers Association (MRA) in cooperation with the Federal Reserve Bank of Chicago’s Detroit branch.
“The numbers indicate we are in the middle of a mid-summer roller coaster. With the mix of tourism spending and back-to-school spending, it will be interesting to see what August numbers bring,” said William J. Hallan, President and CEO of the Michigan Retailers Association. “To have half of survey respondents see a rise in overall sales is a promising start to a thread of many positive months.”
Future Optimism Back Up From Dip
Fifty-three percent (53%) of retailers predict their sales will continue to rise through September, and 13% said they expect their sales to decline. Thirty-four percent (34%) anticipate no change. That results in a 78.0 Index rating, a significant rise from last month’s prediction Index rating of 66.7.
Back-to-School Shopping
The National Retail Federation released their annual data on expected back-to-school spending. Their economists expect spending to reach a record $41.5 billion, up from $36.9 billion in 2022 and the previous record high of $37.1 billion in 2021. That amounts to $890.07 per household on back-to-school shopping, up from $864.35 in 2022, a previous record.
Unemployment Rates
The national unemployment rate dropped to 3.6%, compared to 3.7% in May. Last year, the national unemployment rate was 3.6%. The unemployment rate for Michigan preliminarily dropped to 3.6% from May’s 3.7%. Last year, the unemployment rate was 4.1%.
