California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

Retail sales unexpectedly rose in January, after six straight months of declines; according
to The Commerce Department, total retail sales rose 1% last month versus a revised
drop of 3% in sales in December. December sales were originally reported to have declined
2.7%. The report raised skepticism among economists and retail analysts.

The advance estimates of U.S. retail and food services sales for January, adjusted for seasonal
variation and holiday and trading-day differences, but not for price changes, were $344.6 billion,
an increase of 1.0 percent (±0.5%) from the previous month, but 9.7 percent (±0.7%) below
January 2008.

The change which probably occurred due to deep discounting by retailers has sent business
journalists scrambling asking experts asking how and why the forecasts and predictions were
wrong. Many, journalists including an article in Bloomberg by Bob Willis, had illustrated that the
sales would fall 0.8 percent. 

The government report showed sales rose across retail categories, including purchases at 2.6%
gain electronics sales, a 1.6% increases in clothing sales and a 1.1% increase in purchases at
general merchandise stores. Elsewhere, food and beverage stores logged a 2.1% gain last month,
and purchases at gasoline stations rose 2.6%, auto purchases rose 1.6%.

I am Tim Johnson and this has been the California Business Minute.