The Retail Sales report is a monthly measurement of the total sales of goods and services by retail stores in the United States.
It serves as a key indicator of consumer spending, which makes up a significant portion of the country’s Gross Domestic Product (GDP).
Retail sales are a crucial component of the U.S. economy, offering insights into consumer spending patterns and overall economic health.
Policymakers, investors, and businesses use this report to gauge the health of the economy and make informed decisions.
What is Retail Sales?
The U.S. Retail Sales report captures sales data from various retail establishments, including department stores, supermarkets, gas stations, and online retailers.
The report typically excludes sales from the service sector, such as restaurants and hotels.
The data is collected by the U.S. Census Bureau through a monthly survey. called the Monthly Retail Trade Survey (MRTS).
The MRTS surveys approximately 13,000 retail businesses across the United States, representing various retail sectors.
The survey collects data on sales, inventories, and other key performance indicators from these businesses. The collected data is then processed, analyzed, and adjusted for seasonal factors by the Census Bureau.
How to read the Retail Sales report
The U.S. Retail Sales report is published as a percentage change from the previous month and is usually adjusted for seasonal factors.
The report also provides a year-over-year comparison. It’s important to consider the following when reading the report:
- Headline Retail Sales: This figure represents the total sales for the month, including both durable and non-durable goods.
- Core Retail Sales: This figure excludes sales from the volatile automobile and gasoline sectors, providing a clearer picture of underlying consumer spending trends.
- Revisions: The report is subject to revisions as more accurate data becomes available. Keep an eye on revisions, as they may alter the interpretation of the data.
Why is Retail Sales important?
The Retail Sales report is a vital economic indicator for several reasons:
- Consumer Spending: As a measure of consumer spending, the report can provide insights into the overall health of the economy. Strong retail sales growth can signal a robust economy, while weak growth may indicate economic stagnation or decline.
- Business Cycle: Changes in retail sales can offer clues about the current state of the business cycle, helping policymakers and investors make more informed decisions.
- Investment Decisions: Retail sales data can influence stock market trends and inform investment decisions, as strong sales may boost company revenues and share prices.
- Monetary Policy: The Federal Reserve uses retail sales data to assess the health of the economy and guide monetary policy decisions, such as interest rate adjustments
Who publishes the Retail Sales report?
The U.S. Retail Sales report is published by the U.S. Census Bureau, a division of the U.S. Department of Commerce.
The Census Bureau is responsible for collecting and publishing economic data related to retail sales, among other key economic indicators.
When is the Retail Sales report released?
The U.S. Retail Sales report is usually released on a monthly basis, around two weeks after the end of the reference month.
The exact release dates can be found on the U.S. Census Bureau’s website.
It’s important to note that the Retail Sales report is subject to revisions as more accurate and complete data becomes available. These revisions may be made in subsequent reports, providing a more accurate picture of retail sales trends over time.