Retail Sales Climb, Recession Over

Today we saw the release of economic data related to consumer spending. Inventories are down, and the big number, U.S. retail sales, showed improvement in August. Of course, August retail sales are still down twice what they were last year at this time, but there is some definite improvement in the month-to-month numbers. On the other hand, much of that improvement is likely the work of the Cash for Clunkers program that boosted auto sales last month. But economic beggars can’t be choosers, and many are just pleased that there is some good news — even when auto sales are factored out.

Bernanke says the recession is over

Also today, Federal Reserve chair Ben Bernanke remarked that he thinks it “very likely” that the recession is over. The news over the last couple of months points to increased economic activity and growth, and that means the recession is at an end. This news, along with the retail sales data, is providing a measure of hope that things might soon pick up for businesses as consumers loosen their tight grip on their wallets and start spending more.

However, it is important to note that even though the recession might be over, recovery will still take a long time. There is no easy way out of the recession, and a weak economy could be seen through next year.

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