Year-on-year, retailers also improved. From September 2003,companies posted a sales increase of 7.5%, the Department reported.The government says the highest performers were gas stations,reporting an increase of 15.1% from the year before, and homeimprovement retailers, whose sales shot up 14.4% from 2003. Totalsales from July through August were 6.5% compared to a yearago.

The Department's report comes about a week after theInternational Council of Shopping Centers' survey on monthlysame-store sales. In September, comparable sales rose 2.4%, ICSCsays. During that period, wholesale clubs were the retail sector'sleaders with a 6.6% year-on-year jump.

Meanwhile, Morgan Stanley released a favorable report on Kohl'sdepartment stores. The firm says Kohl's "is on its way back toachieving industry-leading comp performance."

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