California Business Minute™

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

The U.S. Census Bureau announced advance estimates of U.S. retail and food
services sales for June, adjusted for seasonal variation and holiday and
trading-day differences, but not for price changes, were $342.1 billion,
an increase of 0.6 percent (±0.5%) from the previous month, but 9.0 percent
(±0.7%) below June 2008.

Sales at retailers rose 0.6 percent from May, more than forecast and the
biggest gain since January. However, if excluding autos and gas, purchases
dropped for a fourth consecutive month.

The figures indicate that consumer spending likely fell last quarter, with
little momentum heading into the latter part of the year. Job losses and
declining home values are weighing on households, leaving them with little
appetite to spend more, other than on necessities.

Excluding autos, gasoline and building materials -- the retail group the
government uses to calculate gross domestic product figures for consumer
spending -- sales dropped 0.1 percent, the same as in the prior month.

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