100-point Index marker sees a 2.6-point decline in August, but towers over 2023 numbers by more than 12-points
Michigan Retailers Association today reports that August 2024 sales decreased in comparison to July, landing at 44.9 on the 100-point Retail Index. The July 2024 Retail Index came in at 47.5. Despite this month-over-month decrease, August’s numbers remain consistent with retail trends seen throughout 2024 and show promising improvement over the August 2023 Index of 32.4.
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.
Fifty-one percent noted a decrease in August sales over July, 42% of Michigan retailers surveyed reported a sales increase, and 7% reported no change.
“August’s decline in sales serves as a great reminder that Michigan’s retailers need our support. The future remains optimistic as we head into the holiday shopping season,” said William J. Hallan, President and CEO of the Michigan Retailers Association. “But it’s important to find ways to shift our out-of-state spending to support local as often as possible.”
Retailers’ Optimism Fades as Holidays Approach
When asked to predict their sales outlook for the next three months, 53% of retailers predicted their sales will continue to rise through November and 28% said they expect their sales to decline. Nineteen percent anticipate no change. That results in an Index rating of 64.7, a slight decrease from July’s 67.4 and June’s 66.0.
“Every purchase makes a difference, big or small. Buy Nearby Weekend is coming up on October 4-6. We encourage every Michigander to shop small and keep their dollars circulating right here in our communities. Redirecting just 10% of our estimated out-of-state e-commerce to Michigan-owned businesses would generate $2.6 billion in economic output for Michigan, according to our recent economic survey,” said Hallan.
Early Return to School Causes Frustrations Among Retailers
Many retailers surveyed shared frustrations with students returning to school before Labor Day, citing that earlier school start dates restrict end-of-summer travel and tourism. Tourist-dependent and seasonal businesses rely on late-August sales and have been more heavily impacted by earlier back-to-school schedules across the state.
Unemployment Rates
The national unemployment rate in August fell to 4.2% from July’s 4.3%. Last year, the national unemployment rate was 3.8%. The unemployment rate for Michigan has not been announced for August. Last year, the rate came in at 4.0%.
