What exactly are retail sales?

Retail sales measure the total revenue generated by retail establishments and online platforms from selling goods and services directly to consumers over a specific period, typically monthly or quarterly.

Why are retail sales important for the economy?

Retail sales are a key economic indicator because they reflect consumer spending, which is a major component of GDP. Strong retail sales often signal a healthy economy and high consumer confidence, while declines can suggest economic weakness.

What factors influence retail sales performance?

Key factors include consumer income levels, employment rates, inflation, interest rates, seasonal demand, consumer confidence, and major economic events or policy changes.

How are retail sales data typically collected and reported?

Government agencies, like the U.S. Census Bureau, collect data through surveys of a representative sample of retail businesses. These findings are then aggregated and reported monthly or quarterly, often seasonally adjusted, to show trends.