The Food and Drug Administration said it has found the cause of the nationwide salmonella outbreak: the chicken feed.

Both Iowa farms- Wright County Eggs and Hillandale Farms- used the feed given to the hens.

It is believed the feed became contaminated after going through a heat treatment process that would have killed off any present salmonella bacteria, FDA officials said.

Chicken feed is made of grain and there are seven basic types of feed, including pellets, crumbles and mash. Different nutrients, such as calcium, protein and minerals can be added depending on the specific type of feed.

The outbreak has resulted in a recall of more than half a billion eggs across the country.

It is estimated nearly 2,000 people in 22 states have been sickened because of the contaminated eggs.

The hens at the two infected farms are still laying millions of eggs a day.

Those eggs will be sent to breaking plants where they will be pasteurized to kill off any bacteria and then sold as liquid eggs or used in food products like salad dressings, cookie dough and cake mixes.

The recalled eggs already in store are not being pasteurized but destroyed. And, even though the FDA knows the source of the salmonella, the recall may not be over.

Dr. Margaret Hamburg, the head of the FDA, said earlier this week that there is a possibility of more recalls.

"We may see some additional sort of sub-recalls over the next couple of days, maybe even weeks, as we better understand the network of distribution of these eggs that are contaminated," said Hamburg.

She also said the FDA needs to expand its enforcement through new laws that take a "preventive approach" to food safety.

(Photo courtesy: AP Images)

The Pakistani Taliban suggested Thursday that violence was an option against foreign aid workers, who are helping with the worst flooding in the country's history, calling their presence "unacceptable."

The United Nations said it would not be deterred in its mission to provide support.

"We are here for the people and will continue to deliver," said United Nations spokesman Maurizio Giuliano. "Any potential attack against us would be against the people of Pakistan, whom we are here to assist."

But the State Department expressed concern for an attack that "may well" happen.

"It is a real threat," said State Department spokesman P.J. Crowley.

In a telephone call to the Associated Press, Azam Tariq, a Pakistani Taliban spokesman, said the United States and other foreign workers have other motives and are not focused on offering assistance.

"Behind the scenes they have certain intentions, but on the face they are talking of relief and help," said Tariq. "No relief is reaching the affected people, and when the victims are not receiving help, then this horde of foreigners is not acceptable to us at all."

"When we say something is unacceptable to us, one can draw his own conclusion," said Tariq, hinting at the possibility of upcoming violence.

Millions have been displaces as a result of the floods that started a month ago in response to a monsoon rains. So far, a total of $800 million has been pledged by foreign countries to help Pakistan.

An estimated 1,600 people have been killed by the floods and around 800,000 people are still stranded and only accessible by air.

Despite the Taliban's threat, violence in the country has been low since the floods started. So far, the most deadly attack happen on Monday in northwest Pakistan when three bomb attacks killed 36 people.

(Photo courtesy: AP Images)

American Airlines was hit with a whopping $24.2 million fine Thursday for lapses in maintenance issues that resulted in thousands of canceled flights in 2008.

It is the largest fine ever proposed by the Federal Aviation Administration.

American Airlines said it will challenge the fine. Airlines often contest fines by the FAA or negotiate to reduce them.

American Airlines is a unit of AMR Corp and is the second-largest carrier in the U.S.

The FAA said the airline failed to address issues with the electrical wires in the wheels of 300 MD-80 series planes.

Tim Smith, American Airlines spokesman, said passenger safety was never an issue.

"These events happened more than two years ago, and we believe this action is unwarranted," said Smith. "We are confident we have a strong case and the facts will bear this out."

This penalty tops the $10.2 million fine against Southwest Airlines from 2006 and 2007 for alleged inspection shortcoming on Boeing 737s. Southwest negotiated and agreed to pay $7.5 million.

These two fines against American and Southwest come after criticism from congressional and industry insiders. They said the FAA and safety regulators had become too cozy with the airlines.

In addition, the FAA under Obama has become more vigilant with passenger and cargo air carriers and has increased fines.

"We expect operators to perform inspections and conduct regular and required maintenance in order to prevent safety issues," said Transportation Secretary Ray LaHood. "There can be no compromises when it comes to safety."

(Photo courtesy: AP Images)

The Empire State Building has a new neighbor.

New York City officials voted to approve a new 1,216-foot-tall skyscraper that will stand a mere 34 feet shorter than the iconic Empire State Building.

But the skyscraper is not coming without controversy, even from Boston city leaders.

The developer of the proposed New York City skyscraper, Vornado Realty Trust, was also the developer of the would-be One Franklin building.

Currently a big hole in Downtown Crossing, One Franklin was supposed to be full of retail shops, offices, condos and a hotel.

Vornado Realty Trust said the $750 million project, which was started in 2008, was stopped because of financial issues.

Mayor Tom Menino claimed the developer left the project in Boston unfinished to propose the New York City skyscraper.

Menino called the "arrogance" of Vornado Realty Trust unfathomable and said he cannot understand a company that would treat Boston so disrespectfully.

His office called New York City Mayor Michael Bloomberg's office to inform them of the difficulties the city has had with Vornado, but the City Council approved the project anyway.

The skyscraper, called 15 Penn Plaza, has angered some, most notably the Empire State Building's owner Anthony Malkin, who called the new project an "assault on New York City and its iconography."

But Bloomberg supported the City Council's decision to approve the new building.

"Anybody that builds a building in New York City changes its skyline - we don't have to run around to every other owner and apologize," Bloomberg said. "One guy owns a building, he'd like to have it be the only tall building - I'm sorry, that not the real world."

Not only will the new skyscraper alter the skyline, it won't be able to be missed by sightseers from the Empire State Building's famed 86^th-floor observation deck.

When it was completed in 1930, the Empire State Building was the city's tallest building. On a clear day the view can stretch for as far as 80 miles.

(Photo courtesy: AP Images)

North Korean leader Kim Jong Il was in China Thursday for what is his sixth trip to the country and his second in three months.

The trip comes as a surprise since former U.S. President Jimmy Carter is in North Korea and it was expected he would meet with the reclusive leader.

It is a bit unusual for Kim to visit China given such a high-level figure from the United States is visiting his country.

China is North Korea's biggest diplomatic and financial supporter. Kim is traveling with his son and he visited a school in northeastern China, according to two teachers.

This visit comes before next month meeting of representatives from the Workers' Party of Korea in which officials will be closely monitoring the meeting for clues about Kim's successor.

It is speculated that Kim is in poor health after having a stroke two years ago and is looking to hand over power to his third son, Kim Jong-un.

Daniel Pinkston, a Korean affairs specialist with the International Crisis Group, said the visit was probably related to the WPK meeting.

"There is so much circumstantial evidence pointing to the succession issue. And there are other signs that they are hurting for cash aid and assistance. The two things are not mutually exclusive," he said.

"If the succession is being accelerated, the of course Kim has an incentive to address the economic problems and other issues which will be helpful for his son in the transition to taking power," said Pinkston.

Carter is in the country on a humanitarian trip to rescue a Boston man sentence to eight years hard labor after he was convicted of crossing into the country illegally from China.

However, it is now unclear if Carter will meet with Kim.

The former president has already met with Kim Yon Nam, the president of the Presidium of the Supreme People's Assembly of North Korea and the two had a "cordial talk," according to the official news agency.

(Photo courtesy: AP Images)

By Anum Hussain -- August 25, 2010

Massachusetts is expecting $250 million for rising as a successor in the Obama Administration's education program, representing the state as a national education leader.

The U.S. Department of Education announced Tuesday that Massachusetts would be among nine states to receive grants in the second round of the 'Race to the Top' competition. The Bay State received the highest score in the competition, finishing with 471 points out of a possible 500.

The federal competition awarded a total of $3.3 billion split between the winning states, based on student population. The money is distributed in hopes of sprouting new educational initiatives.

The $250 million awarded to Massachusetts will be split two ways to help the state's school system. Half of the money will go straight to school districts, while the other half will be utilized for statewide educational efforts.

The Bay State will push the money towards assisting struggling school systems, refurbishing training for educators and discovering new ways to increase student achievement. A portion of the money will also go towards executing the new national standards for English and math classes for every grade level.

The U.S. Education Department selected Delaware and Tennessee in the first round of funding.

Former President Jimmy Carter met with North Korea's government representatives Wednesday, after arriving in the country on a mission to bring a Boston man home from the communist nation.

Aijalon Mahli Gomes was sentenced to eight years hard labor earlier this year after he illegally crossed the border from China.

Before his arrest, Gomes was an English teacher in South Korea. It was reported by North Korean media that Gomes had attempted suicide last month.

Carter's trip comes after North Korean officials said Gomes would only be released if a high-level American came to Pyongyang.

U.S. officials have made clear that Carter's visit is a private humanitarian mission, even though it is expected that Carter will have talks with North Korean officials including President Kim Jong-il.

The trip can also serve as an opportunity for unofficial diplomacy between the two countries.

"It's a mission to secure the release of Mr. Gomes. But we don't want to jeopardize the prospects for Mr. Gomes to be returned home by discussing any of the details," said U.S. State Department spokesman Mark Toner.

Relations between the U.S. and North Korea have been particularly tense lately with the U.S. leading the charge to punish the country for its defiance by testing a nuclear weapon and long-range missiles.

This is not the first time Carter has visited the country. In June 1994 he went to North Korea and spoke with the late President Kim Il Sung, Kim Jong-il's father, which resulted in a breakthrough nuclear disarmament deal.

Carter arrived Wednesday with his wife, Rosalynn, in an unmarked plane and was greeted by a North Korean girl with a bouquet of flowers. He is expected to leave Thursday.

Last year, former President Bill Clinton embarked on a similar mission to free two journalists also sentenced to years of hard labor in the country.

(Photo courtesy: AP Images)

The eggs from two Iowa farms at the center of a recall because of salmonella could still be available for you to eat.

The eggs the hens are currently laying will be sent to a breaking plant where they will be turned into liquid eggs and pasteurized. They will then be sold as liquid eggs or used in other products.

The Food and Drug Administration and food science experts say there is no reason why the eggs, including those from infected hens, could not be consumed if they have been pasteurized.

The pasteurization process raises the temperature of the eggs so high that the salmonella bacteria are killed.

The bacteria "are all going to be dead, and if they're dead, they're not going to hurt anybody," said University of Illinois food science professor Bruce Chassy.

The two farms that have recalled more than 550 million eggs say they will not stop their hens from laying eggs.

Hillandale Farms and Wright Egg Farms say their hens are still laying millions of eggs a day. Julie DeYoung, of Hillandale Farms, say the company has 2 million birds that lay an egg roughly once a day.

Usually, egg producers send around 30 percent of their eggs to breaking facilities while the other 70 percent of eggs are left in-shell.

The two farms will test batches of pasteurized eggs and send the results to the U.S. Department of Agriculture. USDA spokesman Caleb Weaver said this is "an extra check to make sure it's going exactly as planned."

It is still unclear what the farms plan to do with the infected hens.

The FDA cannot instruct the farms to kill the infected hens, yet it is possible the farms could decide to do that on their own.

(Photo courtesy: AP Images)

Democrats are exploring ways to keep federal funds for embryonic stem cell research after a judge ruled yesterday to temporary block federal financing of research in cases where the embryo is destroyed.

This basically puts a stop to all federally funded embryonic stem cell research said Bill Burton, the White House deputy press secretary.

This includes research approved by former President George W. Bush, who had much more restrictive guidelines compared to President Barack Obama.

Rep Diana DeGette (D-Colo.), a prominent supporter of stem cell research, said she informed other Democrats about the ruling during a conference call Tuesday morning.

"This court opinion hit everybody by surprise," said DeGette. "It calls all of these policies of the last 10 years into question. I think what it really underscores is the extreme urgency for Congress to act to codify ethical embryonic stem cell research."

The White House is considering what action needs to take place in reaction to the judge's ruling.

"The president said very plainly when he laid out his stem cell policy that this is important, potentially lifesaving research that could have an impact on millions of Americans and people all around the world," said Burton. "He thinks that we need to do research. He put forward stringent ethical guidelines, and he thinks that his policy is the right one."

Federal Judge Royce Lamberth ruled yesterday, in Washington D.C., that federal financed research violated a law, passed in 1996, that does not allow for federal money for studies where embryos are destroyed.

The law had been interpreted as allowing federal funding for research using embryos, as long as private money was used for the destruction of the embryos beforehand.

Judge Lamberth disagreed. He said the research could not be separated from the destruction of the embryos, most often obtained from discarded embryos at fertility clinics.

Not everyone is upset with the ruling. Charmaine Yoest, president of Americans United for Life, an antiabortion group, called the judgment a "common-sense decision."

Rep. Mike Pence (R-Ind.) said in an email statement that "it does not make sense to spend tax dollars on the morally divisive practice of destructive embryonic research."

(Photo courtesy: AP Images)

Shirley Sherrod, the former Department of Agriculture official who was forced to resign last month, has declined a job offer to return to the agency on Tuesday.

Agriculture Secretary Tom Vilsack offered Sherrod a position working on race relations within the agency. Vilsack said the option of Sherrod returning to her previous position as the Georgia State Director of Rural Development was also discussed.

"I think I can be helpful to [Vilsack] and the department if I just take a little break and look at how I can be more helpful in the future," said Sherrod at a news conference with Vilsack.

"I look forward to some type of relationship with the department in the future," she said. "We do need to work on the issues of discrimination and race in this country."

Sherrod was fired after a videotape, posted by conservative blogger Andrew Breitbart on his website, appeared to show her making racists comments about helping a white farmer over two decades ago.

Sherrod was making a point about overcoming racism but the video was edited out of context.

Vilsack has taken responsibility for the firing and said the White House had no influence on the decision.

"I disappointed the president. I disappointed the department, I disappointed Shirley and I disappointed myself," said Vilsack.

In the video, Sherrod is speaking at a NAACP event from March. Breitbart said he posted the video to show that the NAACP uses racist claims to stop opposition and never meant it as an assault on Sherrod.

"What this video clearly shows is a standard that the Tea Party has not been held to, is that the NAACP shows people in the audience there applauding her when she discriminates against a white farmer. That was the point I was trying to make," said Breitbart.

"This was not about Shirley Sherrod. This was about the smears that have gone on against the Tea Party."

Sherrod reiterated today that she still plans to sue Breitbart but did not comment further.

(Photo courtesy: AP Images)

By Cat Viglienzoni - August 18, 2010

A new study shows hearing loss is increasing among teenagers, despite better medical care and public awareness campaigns about the dangers of loud noise. The report says hearing loss in teens increased by a third from the 1980s and 90s, meaning some 6.5 million teens have some sort of hearing loss.

The study found that the portion of United States adolescents aged 12 to 19 with any hearing loss rose from 14.9 percent during the 1988 to 1995 period to 19.5 percent in 2005 and 2006. For this study 'hearing loss' is defined as a loss of 15 decibels in one ear, meaning the sound would have to be turned up 15 decibels above the standard detection level for it to be heard. The study also found that a less common amount of hearing loss - 25 decibels - also increased. The study found hearing loss increased in the higher sound frequencies but not the low ones.

Study co-author and researcher with Brigham & Women's Hospital Dr. Gary Curhan said many people don't even know they have lost some of their hearing because they don't know what they are missing.

"Excessive exposure to loud noise is known to cause permanent hearing damage, but the amount that is safe and the duration that is safe is still unknown, particularly for kids of this age," he said.

Experts say they are surprised by the findings because of increased publicity about the risks of exposure to loud music and the prevalence of childhood vaccines against meningitis and pneumonia that can prevent many ear infections that may damage hearing. Though the study was not designed to determine the causes of the hearing loss, Curhan said while noise exposure is a known culprit, diet, medical care, lack of exercise and obesity might also play a role.

When asked about their exposure to loud music, kids with good hearing didn't give substantially different answers from those with poorer hearing. Curhan said they could be underestimating their exposure to loud music, or they could be affected differently depending on how that noise is delivered - for example, whether they wear earbuds or headphones or whether the noise is played on speakers.

Foxborough teen Matthew Brady is one of those teens faced with hearing loss at a young age. The 17-year-old said he realized he'd lost hearing after listening to music during a workout.

"I had my iPod blaring and all of a sudden when I was done on the treadmill and shut my iPod off, I couldn't hear through my left ear," he said. He urged fellow teens to turn down their music, otherwise they could face the same hearing loss as him.

Impaired hearing can make it harder for adolescents to learn, Curhan said. But another important affect of hearing loss on teens is that they could be affected socially and emotionally if they cannot hear as well. Curhan said kids who don't hear well can "miss subtle cues in peer-to-peer interactions and can be perceived as quirky or offbeat by not responding or because they respond inappropriately."

The study also found that adolescents whose families were below the poverty line were more likely to have hearing loss than those above the line - but only in the 2005-6 analysis. This could be because poorer kids could have more untreated middle ear infections, which can sometimes damage the inner ear and sabotage hearing. However, another hypothesis is that poverty may result from poor hearing that is genetically passed on to children, which can interfere with education and achievement and translate to less opportunity and lower income-earning potential. Curhan said the poverty-related hearing loss may not have shown up in earlier years because a different poverty-line cutoff was used then.

By Cat Viglienzoni - August 17, 2010

Gay rights and equality advocates were handed another delay yesterday in their fight for same-sex marriage in California. A federal appeals court panel blocked a judge's ruling that would have allowed gay marriage to take place in the Golden State on Wednesday.

The 9^th Circuit Court of Appeals three-judge panel's ruling prevented state officials from issuing marriage licenses to gay couples beginning on 5 p.m. PDT tomorrow - when Judge Vaugh Walker's stay on gay marriage would have expired. Instead, same-sex couples will have to wait until the appeal is done. Opponents of Proposition 8, the state's ban on gay marriage that was overturned by Judge Walker, said they will not appeal the panel's decision to extend the ban.

Executive director of Equality California Geoff Kors said they are extremely disappointed that same-sex couples will have to wait to marry the people they love.

"I mean, I hope everyone can think how disappointing and upsetting it would be if a judge told you that you had to wait months, if not years, to get married," he said.

But Kors - and other gay rights advocates - are hardly despairing. The legal system's structure means the appeal of Judge Walker's Aug. 4 ruling needs to be undertaken by the state. But Gov. Arnold Schwarzenegger and Atty. Gen. Jerry Brown, both charged with defending the state's ban on gay marriage, have expressed disapproval of it and have called for gay marriage to resume as soon as possible.

"The judge asked both parties in the brief why the case should even be allowed to be appealed, saying that it's very possible that there's no standing, since our governor and attorney general have refused to appeal the decision [to overturn Prop. 8], which is something we're very grateful for," Kors said.

In the meantime, gay marriage supporters say this is just another bump in the roller-coaster ride for marriage equality, and the decision does not change their hopes that they will someday be able to get marriage licenses.

"It's disappointing, but it's not if it's surprising," said Thea Lavin, who had been hoping to line up for a marriage license on Wednesday evening or Thursday morning. "We're used to a lot of ups and downs, highs and lows in our journey toward marriage equality."

However, legal experts say the decision could be a strategic victory for gay rights advocates. Because the appeals court put gay marriage on hold temporarily, opponents do not have to seek a Supreme Court stay. The Court is widely regarded as sharply divided, with Justice Anthony Kennedy considered a swing vote. A vote on a hold on gay marriage in California could have pushed the Court to take an early stance on gay marriage, a topic it has so far avoided.

Meanwhile, gay marriage opponents welcomed Monday's ruling, calling it a protection of the rights of voters who voted Prop. 8 into effect in November 2008.

Andy Pugno, general counsel for the coalition of religious and conservative groups that sponsored Prop. 8, argued that permitting same-sex unions while the case was on appeal would create legal chaos if the ban is eventually upheld.

"Invalidating the people's vote based on just one judge's opinion would not have been appropriate, and would have shaken the people's confidence in our elections and the right to vote itself," he said.

Under the timetable laid out on Monday, it is unlikely the court will deliver a decision on gay marriage in California before next year. A different three-judge panel will review the constitutional question that many feel will ultimately end up before the Supreme Court.

(Photo courtesy: AP Images)

By Cat Viglienzoni - August 16, 2010

Pakistanis in the midst of the worst flooding their country has seen in 80 years may be getting some extra help soon. Officials from both Europe and the United States have announced more assistance will be coming. This comes a day after United Nations secretary general Ban Ki-moon described the floods as 'a disaster of mind-blowing proportions.'

The United States has flown $300,000 of donated materials to Pakistan so far, and officials say more help is on the way. They said they can provide shelter for more than 115,000 Pakistanis left homeless by the floods. The U.N. said 875,000 homes have been destroyed.

A spokesman for the European Commission for International Cooperation Ferran Tarrandellas Espuny said Europe may be sending more aid to the flood-stricken country.

It's possible that the aid approved by the commission so far is not sufficient, and therefore Commissioner Georgieva is studying the possibility of further increasing our allocation for the region," he said.

Over the weekend, new floodwaters swept through the country, and the government now says some 20 million people have been affected by the flooding. The floods have also left 6 million people facing starvation as their livelihoods were swept away by the water.

In addition to a lack of food, a shortage of clean water has raised significant health concerns, as the U.N. reports the first case of cholera, sparking fears of an outbreak of the disease. The U.N. said 3.5 million children are at risk from deadly waterborne diseases, including cholera. The death toll has already climbed to 1,600 people and could rise rapidly from disease and hunger. At least 2,000 more are thought to be injured from the flooding.

U.N. secretary general Ban Ki-moon said on Sunday as he visited areas of Pakistan affected by the floods that the scene was "heart-wrenching."

"I will never forget the destruction and suffering I have witnessed today," he said. "In the past I have witnessed many natural disasters around the world, but nothing like this."

He urged the world to provide and 'unprecedented response' to 'unprecedented floods,' and said the world 'must stand with the people of Pakistan' during the disaster. According to reports, only one quarter of the $459 million dollars of initial relief has reached the country.

Delays in delivering aid and the continuing threat of future floods have contributed to widespread public anger over the slow government response to the floods. Protestors blocked roads to demonstrate their anger with the delays in aid delivery. The presence of militant groups handing out aid has raised concerns that the flooding will destabilize a country already battling terrorist groups.

More forecasts of heavy monsoon rains continue to stymie aid distribution to the affected region, which is about the size of Italy. But even once the rains let up and the floodwaters cede, many families have no hope of returning to their homes, which were completely destroyed.

(Photo courtesy: AP Images)

By Cat Viglienzoni - August 16, 2010

Louisiana's first commercial shrimp season since the Gulf of Mexico oil spill kicks off today, and though reports say the catch is safe, some fear shrimpers will try to sell bad seafood. But shrimpers worry that despite reports of seafood safety, there will not be a market for their catch.

Seafood in the Gulf is being tested more than any other type on the market, and so far, results have come up clean, with no danger from oil contaminants.

Supervisory research chemist at the Northwest Fisheries Science Center Gina Ylitalo said they have put the catch under the microscope - among other tests - to check for minute traces of oil.

"They are quite low levels that we have found," she said. "They don't anywhere near approach the levels of concern the FDA has given guidance on."

Ylitalo said they do a smell test of the raw seafood. They then cook it and do a taste test and another smell test.

 "The seafood from the Gulf of Mexico is safe," she said. "It's as safe as we can make this."

But despite encouraging reports, Gulf fishermen still worry that they won't be able to sell their haul - either because it is contaminated or because people won't want to buy it.

The oil spill that began with the Deepwater Horizon drilling rig explosion on April 20 has hampered the fishing industry in a state that ranks first in the nation in producing shrimp, blue crab, crawfish and oysters. That seafood market is a $318-million-a year business in Louisiana, but demand dropped and prices crashed about a month ago amid fears that the catch wouldn't be any good.

Several trawled areas have turned up catches with none of the signs or telltale smell of oil. But shrimpers also need to know what waters are open for trawling - and that their competition won't try to venture into closed waters and sell bad seafood.

"If you see oily shrimp, you got to throw them back over. Go somewhere else. It's all you can do. And you hope everyone else does the same," said shrimper Dewayne Baham.

Some species of seafood clear out oil from their systems more quickly than others. Fish are the fastest, oysters and crabs the slowest, and shrimp somewhere in between.

More waters closed because of the spill are reopening, but shrimping remains forbidden in federal waters off Louisiana, Mississippi and Alabama, and most of the catches have come off Texas and Florida.

(Photo courtesy: AP Images)

By Cat Viglienzoni - August 13, 2010

There's no sales tax this weekend in Massachusetts on most products, and retailers hope the incentive will encourage consumers to step into stores. But while Massachusetts numbers may get a boost this weekend, the national market has been slower than expected.

After two months of declines, retail sales rose 0.4 percent in July to $367.7 billion, but they did not go up as much as economists had predicted. The continued slow recovery indicates cautiousness among consumers. Because retail sales make up two-thirds of the nation's economic activity, the numbers are closely monitored to judge the state of the economy.

President of Retail Metrics Ken Perkins said they think the back-to-school retail sales increase - which typically begins in July - will start later than usual this year because of the wary economy. He said people will wait for that last paycheck or to see what's in style before heading to the stores to stock up.

"When you black out the auto sales and the gasoline sales and look at more just the traditional consumer spending in retail chains, that was a down a tenth of a percent, and particularly soft in our mind," Perkins said.

But those looking to shop could benefit. Perkins said the general wariness could mean better deals for consumers as retailers compete for customers with slashed prices.

"I think there's some good deals to be had out there because of the competition for a limited pool of dollars," he said. "So consumers should benefit from that."

But even if the numbers aren't as high as expected, they are still better than during the economic downturn last year. Retail sales are up 5.5 percent from July 2009, a government report said. However, the numbers indicate slow growth toward a recovery.

Because the back-to-school shopping season is often an indicator of what the holiday shopping season might look like, analysts don't expect to see shocking gains during the retailers' most profitable season. But they do forecast growth for that time of year.

In the Bay State this weekend, retailers hope to face a wave of customers anxious to take advantage of the no-sales tax weekend to make large purchases. The Retailers Association of Massachusetts estimates sales will total as much as $500 million this weekend because of the tax break on most items. Some of that money may have normally been spent during the week, but it could also have been spent out-of-state.

Meanwhile, retailers used the lull in shopping this week to prepare for what they hope will be a busy weekend. Stores that offer big-ticket items are likely to benefit most from the 6.25 percent sales tax reprieve, whereas stores with items that don't carry much of a tax are likely to be affected less.

The sales tax holiday was first implemented in 2004 and has been held every summer since, with the exception of last year, when the state determined it could not afford the loss of revenue during the economic downturn. Tax collections are predicted to decline by $20-23 million this year due to the tax-free weekend.

(Photo courtesy: AP Images)