Michigan Retailers Association today reports that June 2024 sales dropped from May, landing at 43.3 on the 100-point Retail Index. The May 2024 Retail Index came in at 47.4.
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.
Forty-two percent noted an increase over May sales, 49% of Michigan retailers surveyed reported a sales decrease and 9% reported no change.
“June’s drop is a clear signal that Michigan’s retail sector is facing some challenges. While 42% of retailers did see an increase in sales, the overall decrease in the Index highlights the variability and unpredictability in consumer behavior and spending,” said William J. Hallan, President and CEO of the Michigan Retailers Association.
Three-Month Optimism Ticks Upward
When asked to predict their sales outlook for the next three months, 55% of retailers predicted their sales will continue to rise through September, and 17% said they expect their sales to decline. Twenty-eight percent anticipate no change. That results in an Index rating of 66.0, an increase over May’s 63.0.
“We’re still seeing numbers below the 50-positive threshold, as many consumers are tightening up their spending habits to save money. Even while being conservative with their pocketbooks, it’s important to note that each purchase at a local retailer is injected back into the local economy in the form of wages, added jobs, and a boost in the gross economic output,” said Hallan.
Back-to-School Shopping Already Begun
The National Retail Federation reports that as of early July, 55% of back-to-school shoppers have already begun buying items for the upcoming school year. Forty-five percent of shoppers with items remaining say they are waiting for the best deals and another 45% say they do not know what is needed yet. Total spending for back-to-school is expected to reach $38.8 billion, down from 2023’s record high of $41.5 billion.
Unemployment Rates
The national unemployment rate in June rose to 4.1%, over May’s 4.0%. Last year, the national unemployment rate was 3.6%. The unemployment rate for Michigan has not been announced for June. Last year, the rate came in at 3.7%.
