We are seeing a gentle recovery going on in retail sales at this stage, which I expect to get stronger going forward. The pickup in the housing market should have a general wealth effect, making consumers happier to go out and spend.

We might not see retail sales numbers that are that strong yet, but they will pick up toward the end of the year.

If the rise in petrol prices in the producer-price data is reflected in the CPI data, there is a risk the inflation rate could be 2.2 percent.

The margins story is better than expected. Things are getting better for manufacturers.

Although we are only one month into the second quarter, we are concerned by the May sales trend, ... We are hopeful that more seasonably warm weather in June, combined with the boost to the economy from lower interest rates and anticipated federal tax rebates, will trigger a strengthening of sales as we move into the summer. Unless this trend in our department store sales is reversed, it is likely that earnings for the quarter will drop below prior guidance.

Our December department store sales were disappointing, which we think is attributable at least in part to heightened consumer concerns over a slowing economy,