Retail Sales
Why should you care about retail sales figures?
The monthly retail sales report is a key measure of economic health, and is particularly valued because it tracks activity in close to real time, reporting the previous month's sales, unlike many economic indicators, which come out months after the activity being measured occurred. Retail sales are considered a good proxy for consumer spending, which represents nearly two-thirds of the U.S. gross domestic product. As a result, policy makers and investors watch retail sales figures closely to assess the near-term prospects for economic growth and inflation.
Investors pay close attention to the indicator to see how actual sales compare with expectations. Better-than-expected sales figures may push stock prices higher if investors have been concerned about an economic slump. But the same positive report may instead lead to a sell-off if investors are worried that the Federal Reserve will raise interest rates to fight inflation. Follow the links below to learn more.
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Behind the Number
For a quick overview of the monthly retail sales report and a look at its strengths and weaknesses, stop here first.
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Why Investors Watch Sales
Retail sales are watched closely by investors for clues to future market behavior. Learn what impact the indicator can have on the Dow.
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The Month at a Glance
The U.S. Census Bureau releases its monthly retail sales report around the 13th of each month. Find the latest report here.
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A Historical Look
The Federal Reserve Bank of New York tracks the quarterly change in retail sales, providing a snapshot of one component of economic growth and contraction over time.