Nik Rajkovic / news@whmi.com

Inflation and freight costs are still dragging down retail optimism in Michigan.

The Michigan Retailers Association's latest 100-point Retail Index shows the economy may not be as rosy as some like to portray.

"We've had really good unemployment rates. We've had increases in salaries. We've had all sorts of positive things, but we also have this really scary inflation that's been dogging all of us over the past several years and retailers are really taking a hit on that," says spokeswoman Andrea Bitely.

"People aren't out shopping in the way they used to. They're more focused on every day items, those bread and milk items, versus buying extra."

March 2024 sales landed at 44.3 on the 100-point Retail Index. The January and February 2024 Retail Indexes came in at 48.0.

"What that really says is Q1 for retail was incredibly stagnate," says Bitely. "If we are struggling in our retail economy, that means we can be struggling in other parts of our economy."

Inflation, coupled with gas prices, is having a trickle down effect for both retailers and consumers.

"It's incredibly expensive to move things from Point A to Point B," Bitely added. "Whether it be planes, trains or autmobiles being used to deliver a good or product to a business, or to get that product from a business to your home if you're ordering, everything is more expensive."

"It comes down to that inflation rate. And it comes down to general costs of goods and services."

Bitely says consumers can do their part by buying local as much as they can, or maybe consider more weekend getaways within Michigan, rather than traveling out of state.

Read more about the MRA's March index at the link below.