Since early 2009, “three-month smoothed” retail sales in Canada have become stalled at -5.0% year over year. In the United States, the comparable figure has been about -10.0% and this has applied over the last five months, from January 2009 through May. The good news is that the numbers in both countries are not getting any worse and in some important sub-categories – the auto sector and home reno markets - there are signs of gradual improvement after sharp declines in sales in the second half of 2008.