Retail Sales
Retail sales measure the total value of goods sold by retailers over a specific period.
Meaning in Practice
Retail sales data track consumer spending across categories such as clothing, electronics, and food services. The indicator is typically published monthly and adjusted for seasonal effects. It serves as a key gauge of consumption trends.
Why It Matters
Consumer spending is a major component of GDP in most economies. Strong retail sales indicate robust demand and economic momentum. Weak figures may signal slowing growth.
Market Impact
Higher retail sales can boost equities tied to consumer sectors and raise growth expectations. Bond yields may rise if markets anticipate stronger inflation. Weak data can lead to lower yields and defensive positioning.
Example
If monthly retail sales increase by 1.2 percent, it suggests consumers are spending more compared to the previous month.