US chain stores sales drop

US chain store sales dropped 0.3% in the latest week after rising for three straight weeks, the Bank of Tokyo-Mitsubishi and UBS has reported.

Same-store sales are up 2.3% year-over-year. BTM said that July sales are on track for a 3% year-over-year increase, the best since April's 3.1% increase.

Heavy discounting, slightly higher disposable income as a result of tax cuts and an easy comparison with weak sales last July account for the gains, the bank has said.