Based on a scale of 0 to 100, with 50 equaling normal, the index measures retail executives’ evaluations of monthly sales, customer traffic, average transaction per customer, employment, inventories and a six-month-ahead sales outlook expectation.

“Retailers are pleasantly surprised that they have been able to keep the momentum from the holiday season going through the first quarter,” said Tracy Mullin, president and chief executive officer of NRF. “While we expected some weakness due to higher gas prices, consumers have yet to be deterred.”

Major survey indicators for March remained strong as gains in customer sales and traffic increased the Current Demand Index 2.2 points to 61.4. Retail executives also reported more pricing power in March, as the Pricing Index rose 5.5 points to 45.5, the highest reading since the survey’s inception in 2003.

While the Operations Index, which measures inventory levels and employment, remained unchanged at 52.5, retailers are looking ahead with continued optimism. The Demand Outlook, which is a six-month-ahead sales outlook, jumped 6.5 points to 61.5.

The National Retail Federation is the world's largest retail trade association, with membership that comprises all retail formats and channels of distribution, including department, specialty, discount, catalog, Internet and independent stores as well as the industry’s key trading partners of retail goods and services. As the industry umbrella group, NRF also represents more than 100 state, national and international retail associations. For more information, visit www.nrf.com. [June 2005 PET AGE]