August Retail Sales: Up a Very Weak 0.2 Percent

From the Census Bureau:

The result trailed expectations of +0.6 percent at Briefing.com and 0.3 percent for the “markets.”

Zero Hedge describes the result as “testing the recessionary waters.”

Let’s just say that ZH’s assessment is a lot closer to the truth than the Associated Press’s delusional take:

Americans stepped up their spending on cars, restaurant meals, groceries and clothing in August, suggesting that consumers will help sustain U.S. economic growth despite a broader global slowdown.

The Commerce Department said Tuesday that retail sales rose 0.2 percent last month, after advancing 0.7 percent in July. Sales have increased 2.2 percent over the past 12 months, as solid hiring has translated into surges in spending at auto dealers and dining establishments.

The 2.2 percent the AP described is most likely August 2015 compared to August 2014 (though it could be the three months ended in August, since that figure is in the government’s report). That is a pathetic year-over-year increase. The year-over-year August increases during the previous six years have been as follows (most data is here; 2014 and 2015 are in today’s release):

• August 2015 vs. August 2014: +2.2% ($447.715 billion vs. $438.243 billion)
• August 2014 vs. August 2013: +4.9% ($438.243 vs. $417.795)
• August 2013 vs. August 2012: +3.9% ($417.795 vs. $402.296)
• August 2012 vs. August 2011: +4.8% ($402.296 vs. $383.845)
• August 2011 vs. August 2010: +7.5% ($383.485 vs. $356.952)
• August 2010 vs. August 2009: +2.8% ($356.952 vs. $347.223)

Yet the AP is celebrating a 2.2 percent increase, the worst performance since the recession officially ended in mid-2009.

Horse manure.