Article courtesy MIRS News, for SBAM’s Lansing Watchdog e-newsletter
The Michigan Retailers Association Wednesday reported a rapid rise in retail sales in January.
The 100-point Retail Index survey by the association was at 53.8 in January, which is more than 12 points above December. Any number over 50 is positive, but the higher the number, the stronger the activity.
“Retail sales are at the heart of our economy, and with this positive trajectory, we are encouraged that the challenges presented by inflation and other outside forces have had a smaller impact on sales than expected,” Michigan Retailers Association President William Hallan said.
Hallan said January is a typically slow month for retail sales, so to see such a big jump was a very good sign.
“It’s important to note this survey is seasonally adjusted, meaning the rise in retail sales doesn’t mean total sales volume, it means in relation to how they typically perform,” he said.
The survey was conducted by the Michigan Retailers Association in cooperation with the Detroit branch of the Federal Reserve Bank of Chicago.
There were 33% of Michigan retailers that reported an increase in sales and 61% that reported a drop in sales.
The three-month future retail outlook showed that 61% of retailers believe sales will continue to rise through April, while 19% expect a decline, which puts the future Index rating at 64.2. The December future Index rating was at 57.6.
“It’s also typical to see a roller-coaster effect when sales rise, or fall, drastically,” Hallan said. “However, with optimism over the 60-point line, we’re hopeful to see another solid month of sales in February.”