California Business Minute™

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

The U.S. Dept of Commerce, Census Bureau announced advance estimates of
U.S. retail and food services sales for July, adjusted for seasonal variation
and holiday and trading-day differences, but not for price changes, were
$342.3 billion, a decrease of 0.1 percent (±0.5%)* from the previous June
and 8.3 percent (±0.7%) below July 2008.

Retail sales for July were unexpectedly down and sharply disappointing. Overall
retail sales slipped 0.1 percent in June, following a revised 0.8 percent boost
the month before. The July decline came in well below the consensus forecast for
a 0.8 percent advance. Excluding motor vehicles, retail sales dropped 0.6 percent,
following a revised 0.5 percent rise in June. The market had projected a 0.1 percent
uptick for the latest month. Weakness was led by gasoline sales which declined
2.1 percent in July, following a 6.3 percent jump the prior month. Excluding motor
vehicles and gasoline, retail sales fell 0.4 percent, following a 0.1 percent dip
the prior month.

Outside of gasoline and motor vehicles, sales were generally negative. Declines
were notable for building materials & garden equipment, down 2.1 percent, and
sporting goods, hobby, book & music stores, down 1.9 percent. Gains were seen in
health & personal care stores, up 0.7 percent; clothing, up 0.6 percent; and in
food services & drinking places, up 0.4 percent.

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