LANSING – Most retailers maintain a positive projection for spring sales but the industry’s overall short-term outlook took a hit in February, according to the Michigan Retailers Association, falling more than seven points on the index.
The sales index number for February dropped below 50 for the second time in three months, showing consumers were still adjusting to higher payroll taxes, continued high unemployment and rising gasoline prices, the group said Wednesday.
“February’s fall-off in sales puts Michigan’s retail industry back on a bumpy road,” James Hallan, association president and CEO, said in a statement. “January gave us a solid jump from a disappointing December, but February returned us to December’s level.”
The February Michigan Retail Index found that 37 percent of retailers increased sales over the same month last year, while 43 percent recorded declines and 20 percent saw no change.
The results create a seasonally adjusted performance index of 46.8, down from 57.9 in January and the lowest February since 2009. In February 2012, that number was 59.3, according to the survey. Index values above 50 generally indicate positive activity and the higher the number, the stronger the activity.
Looking ahead, 59 percent of retailers expect sales during March and May to increase over the same period last year, while 8 percent project a decrease and 33 percent expect no change. That puts the seasonally adjusted outlook index at 67.3, down from 74.7 in January and just slightly below the February 2012 index of 67.9.
Overall, the U.S. Commerce Department reported that national sales in February increased 1.1 percent or 0.7 percent not including autos, gas stations and restaurants.
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