California Business Minute™

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

The Commerce Department reported that U.S. retail sales rose a seasonally adjusted
0.4% to $366.4 billion in April, the seventh straight increase and the 12th gain
in the past 13 months, led by strong sales at hardware stores and garden centers. 
This was the second month for significant growth in this sector.

The U.S. Census Bureau announced advance estimates of U.S. retail and food services
sales for March, adjusted for seasonal variation and holiday and trading-day differences,
but not for price changes, were $366.4 billion, an increase of 0.4 percent (±0.5%) from
the previous month and 8.8 percent (±0.5%) above April 2009.

However, decreases were seen in areas of home furnishings, electronics and appliance
stores, health and personal care, sporting goods and hobby, book and music stores,
general merchandise and in clothing and clothing accessories.

Retail sales have been surprisingly strong specifically in light of the still-weak
financial condition of many American families, and higher unemployment.  Many
economists were looking for a bit of a pullback in April. Consumers are still
facing major challenges, including weak job growth, large levels of debt and slow
income growth. But consumers also have many pent-up demands after two years of
recession.

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