What It Measures
Retail sales measures consumer spending at retail stores and food service establishments. It includes:
- Motor vehicles and parts dealers
- Furniture stores
- Electronics and appliance stores
- Building materials stores
- Food and beverage stores
- Health and personal care stores
- Gasoline stations
- Clothing stores
- General merchandise stores
- Nonstore retailers (e-commerce)
- Food services (restaurants)
The data is reported in nominal terms (not inflation-adjusted).
Why It Matters
Consumer Spending Proxy: Consumer spending drives ~68% of U.S. GDP, making retail sales a critical growth indicator.Economic Momentum: Strong retail sales signal consumer confidence and economic expansion.Fed Consideration: Robust consumer spending can contribute to inflation concerns.Sector Analysis: Shows which retail categories are strong or weak.
How to Interpret
Control Group: Excludes autos, gas, building materials, and food services; used directly in GDP calculations.Real vs Nominal: Adjust for inflation to see real spending changes.Seasonal Patterns: Holiday spending creates large seasonal swings.