The Retail Sales report is a monthly released report
that follows the currency value of all the goods and services that
businesses have sold within the retail market. It draws information
from all businesses that sell end products to consumers - ranging
from the small to the very big, and the point-of-sale businesses to
the non-store retailers (like mail-order catalogues and vending
machines).
It has two parts:
- The total sales - which includes the disparity in percentages
between the current and the previous
- The ex-auto - which deducts the sales from the auto industry,
since the high ticket price of sales from automobiles can mess up
the total figure
The trend of the Retail Sales report mirrors the
overall economic health of the country. Falling sales figures can
mean that consumer spending is limited due to a recession. In the
same manner, rising sales figures may point to a good overall
economic condition. Retail sales reports are also accurate
predictors of inflation. In fact, the report is a good source of
relevant details that span across some of the most important
component sectors of the retail market.
Moreover, the Retail Sales report is an economic
indicator that is read widely in the whole country. Investors and
economists are interested in it because the report reflects the
spending pattern of the country's consumers (a big part of the
country's Gross Domestic Product) and it shows the stability of the
country's economy.
Another good thing about this report is that it is
very timely, making it one of the best basis from which to predict
future market movements and economic conditions. Investors, who are
concerned about their stocks and trades in the retail market, can
benefit a lot from the Retail Sales report - and makes it easier
for them to track price level changes and retail business
trends.