LANSING – In its most positive forecast since 2012, Michigan’s retail industry sees a stronger holiday shopping season ahead.

Two of every three Michigan retailers expect to increase sales over last year’s holiday season, and the average projected gain is 2.0 percent, according to the Michigan Retail Index, a joint project of Michigan Retailers Association (MRA) and the Federal Reserve Bank of Chicago. The Chicago region includes the Federal Reserve’s Detroit branch.

“Improved economic conditions point to improved holiday sales,” said James P. Hallan, MRA president and CEO. “Unemployment is down, gasoline prices are down and consumer confidence is up.”

Hallan said Michigan’s new Main Street Fairness law also will help boost sales by removing an incentive for consumers to buy online from out-of-state companies. Hallan was the strongest advocate for the new law, which took effect Oct. 1, and requires many out-of-state online retailers to now collect sales tax on their Michigan sales