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Republican presidential candidate John McCain conceded battleground Michigan to the Democrats on Thursday, GOP officials said, a major retreat as he struggles to regain his footing in a campaign increasingly dominated by economic issues.

These officials said McCain was pulling staff and advertising out of the economically distressed Midwestern state. He also canceled a visit slated for next week. Michigan, with 17 electoral votes, voted for Democrat John Kerry in 2004, but Republicans had poured money into an effort to try to place it in their column this year.

In a campaign now unfolding across more than a dozen states, the decision allows McCain’s resources to be sent to Ohio, Wisconsin, Florida and other more competitive states. But it also means Obama can shift money to other states like Virginia, Colorado and North Carolina where he is trying to eat into traditional Republican territory.

The move underscored McCain’s troubles on the economy, which he has acknowledged is not his strongest subject. It also underscored his struggle to beat an opponent who has the money to compete in many states President Bush won four years ago. Polls show Obama has pulled ahead or tied McCain in many of those states.

As Nov. 4 approaches, both sides are adjusting their strategies daily to find the best state-by-state path to the 270 electoral votes needed for victory.

Obama already has abandoned efforts in Alaska, Georgia and North Dakota, but the Democrat has succeeded in making traditional Republican strongholds Indiana, North Carolina and Virginia competitive. Both sides are battling it out in those states, where public polls show Obama ahead or tied.