Retail SalesBack to Glossary
Retail Sales is an important economic indicator used by many countries around the world to measure consumer spending. The report is usually released on a monthly basis and it takes into account the sale of both durable and non-durable goods. Retail Sales is a very important metric for anyone trying to determine the health of an economy because increased consumer spending is a sign of an expanding economy. It’s a leading indicator, meaning that it reveals a trend that has knock-on effects on other areas of an economy such as job creation and stock prices. In a world where consumer spending accounts for a large percentage of a country’s economic activity (particularly in the West), retail sales figures reveal how well-off consumers are feeling as well as how their sentiment surrounding the future prospects of the economy. In the US retail sales comes in two flavors, the core retail sales figures, which exclude costly items such as automobiles and the regular retail sales figures, which take everything into account.
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