by Calculated Risk on 9/14/2007 11:42:00 AM

From MarketWatch: Autos boost August's retail sales

Retail sales rose 0.3% in August, led by a 2.8% increase in auto sales, the Commerce Department said Friday. Excluding motor vehicles, sales fell 0.4%, the biggest decline since last September.

Sales were slightly weaker than expected, but an upward revision to July's figures -- to a 0.5% increase -- put the level of sales closer to expectations.

The ex-auto number is concerning, but overall this report shows sluggish - but not recessionary - consumer spending. If there is an impact from declining mortgage equity withdrawal (MEW), it is still not significant. Hopefully the Q2 MEW numbers will be available next week. I expect MEW to have increased slightly in Q2.