Politico's Jonathan Martin reports that the McCain campaign is halting advertising and direct mail in Michigan and redistributing staff to other more-competitive states.

Republicans had been bullish on Michigan, hopeful that McCain's past success in the state in the 2000 primary combined with voter dissatisfaction with Democratic Gov. Jennifer Granholm and skepticism among blue-collar voters about Barack Obama could make it competitive.

McCain and his running mate Sarah Palin spent the night after the GOP convention at a large rally in Macomb County, just outside Detroit. The two returned later last month for another sizable event in Grand Rapids.

But recent polls there have shown Obama extending what had been a small lead, with the economic crisis damaging an already sagging GOP brand in a state whose economy is in tatters.

Although Michigan has voted Democratic since Bill Clinton's 1992 victory, Pres. Bush closed the gap in Michigan between the 2000 and 2004 elections, losing to Al Gore by 5 points then to John Kerry by 3 points. Prior to 1992, Michigan went Republican in 5 straight presidential elections. However, McCain has led in only two polls in the state since early June.

Obama held two rallies in the state this morning and currently leads by 7.0 points in the RCP Average for Michigan.