California Business Minute™

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

American consumers cut back again in August, driving down sales at the nation's retailers
for the second month in a row, illustrating the fragile economy. Rising unemployment, strained
household budgets and falling home prices -- which make homeowners feel less wealthy -- are
making shoppers more cautious.

The national retail and food sales figures for August were released by the U.S. Department of
Commerce.  Retail sales fell 0.3 percent the third decline since the first of the year and the second
consecutive month for the year. Economists had been forecasting an increase of 0.3 percent.

The total retail sales for August 2008 were $381.2 billion versus $384.6 billion in
July 2008.

Electronics, food and beverage, health and drug stores, sporting goods, books, music and hobby
stores and general merchandise made gains in August. Decreases were seen in auto sales, building
materials and supplies, furniture and home furnishings and in department store sales.

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