Retail Sales
A monthly economic report measuring total consumer spending at retail stores, a key indicator of economic health.
What is Retail Sales?
The retail sales report, published monthly by the US Census Bureau, measures total receipts at retail establishments — from auto dealerships and grocery stores to online retailers and restaurants. It is one of the most closely watched economic indicators because consumer spending accounts for approximately 70% of US GDP. A stronger-than-expected reading suggests robust consumer health and often supports equities and prompts speculation about Federal Reserve rate policy; a weak reading raises recession concerns. Analysts often strip out volatile automotive and gasoline sales to examine 'core retail sales' for a cleaner signal of underlying consumer trends.
Example
In January 2023, US retail sales fell 1.1% month-over-month — the largest monthly decline in a year. The drop was concentrated in autos, furniture, and online shopping, reflecting the impact of Federal Reserve rate hikes on consumer credit-dependent purchases. Equity markets fell on the news as investors interpreted it as an early sign that monetary tightening was cooling consumer demand. The retail sales release, published around the 17th of each month, is a market-moving event.