What it is
Retail sales data quantifies consumer demand for goods and some services, providing a snapshot of the health of the economy's consumer sector. This economic indicator tracks the dollar value of merchandise sold by various retail stores, including online and brick-and-mortar establishments. It is a crucial component of consumer spending, which typically accounts for a large portion of a nation's gross domestic product.
The U.S. Census Bureau releases monthly retail sales figures, often excluding volatile categories like auto and gasoline sales for a clearer underlying trend. Economists and investors closely watch these reports for signs of economic strength or weakness. Strong retail sales can signal robust consumer confidence and economic growth, potentially leading to inflationary pressures, while weak sales might suggest an economic slowdown and disinflation.
Why it matters
Retail sales are a direct measure of consumer spending, which influences corporate earnings, economic growth, and inflation. They indicate the health of the consumer sector.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice