Retail Sales Increase for the First Time in 2 Months - WLNS TV 6 Lansing - Jackson | Your Local News Leader

The state's retail sector bounced back last month after being down for two straight months.

The Michigan Retailers Association says the majority of its members reported increased sales for August and that helped curb a trend of down months. The group said its "seasonally adjusted performance index" went up after a drop in July. It basically takes the temperature of sales through-out the state.

More retailers raised their prices too, 30 percent compared to 6 percent who dropped prices, many trying to make up for a summer that was pretty bare for retailers.

Now, as we head toward the fall, the data show people are in the buying mood again. What's most impressive about this sales uptick is that the unemployment rate in Michigan climbed again last month to over 9 percent. More retailers said they planned to hire in the next three months, not surprising since holiday hiring is already starting.

"We think the biggest reason was back to school. The peak of the back to school shopping season, when we look at some of the categories that were strong, apparel, shoes, general merchandise, those are things generally associated with back to school shopping," said Tom Scott with the Michigan Retailers Association.