Retail sales remain very strong

These charts show the rather exceptional strength of retail sales excluding autos (which make sense to exclude because of the tsunami-related slowdown in auto production and sales in recent months). Nominal sales have surged over 8% in the past year, while real sales are up 5.6% and have now staged a complete recovery to their 2007 highs. This is not a picture of an economy teetering on the verge of a double-dip recession. Sales have recovered to pre-recession highs because employment is once again growing, and those who are working are much more productive—non-farm productivity is up 8.6% since the end of 2007. This is another testament to the inherent dynamism and strength of the U.S. economy, and the tenacity of workers and entrepreneurs who continue to seek to improve their lot in life despite the fiscal policy headwinds.