Same-Store Retail Sales Continue Weak

Redbook this year has been trending decidedly lower than actual retail sales but there may be reason for concern with this month's data that include back-to-back year-on-year readings of only plus 0.2 percent, the latest for the August 20 week. These are the weakest results of the economic cycle and, with special importance, follow July's 0.1 percent decline in the ex-auto ex-gas reading of the government's retail sales report. A second month of decline for this reading would put the whole third-quarter outlook into question.