NEW YORK — Shoppers limited their back-to-school purchases and stayed focused on necessities in August, resulting in the 12th straight month of declining sales for retailers. But there were signs the holiday season could be less dismal than feared.

Despite the weakness many reported, retailers overall did better in August than analysts expected. Some lower-priced chains, such as TJMaxx and Old Navy, even saw sales rise compared with a year earlier, though upscale stores' sales slipped.

"It does seem like the consumer is willing to spend if given a great deal," said Carl Steidtmann, an economist at Deloitte Research. "That reflects a consumer that is slowly coming out of their bunker."

There have been encouraging reports from the housing and manufacturing sectors that the economy is stabilizing.

"It's still weak in the broad trend, but it is considerably stronger than it has been in some time," said Michael Niemira, International Council of Shopping Centers' chief economist.

A monthly compilation of 32 retailers' sales by The ICSC and Goldman Sachs showed sales in established stores fell 2 percent this August compared with August 2008. That was better than the 3.5 percent to 4 percent drop analysts forecast.