Retail Sales

Sales rose 0.6% in Sep., extending the recovery off the 12/08 trough. Retail has been
progressing rather moderately and has not exhibited as strong a bounce as might have
been expected following the steep decline in sales over Half  2 '08. I had an aggressive
8% growth target for 2010, but it now seems unlikely sales will do nearly that well.
Part of the reason for the shortfall reflects the continuing very low inflation rate -- 1.1%
yr / yr -- but it is clear that consumers remain cautious. Retail Sales Chart.