What Are Retail Sales?
Retail Sales is an economic indicator of the United States that reflects changes in sales volume in the retail sector. The Retail Sales indicator shows the level of consumer spending and demand, i.e., inflation from the consumer side.
Retail sales include sales of various goods in terms of size and price, including cars. However, since cars are expensive, seasonal, and variable products, a more reliable indication of retail sales in the country is the part of the indicator that excludes car sales (Core Retail Sales).
How Are Retail Sales Calculated?
It should be noted that Retail Sales are divided into two main groups:
- sales of durable goods, which make up 40% of total sales. This group includes car sales (60%) and sales of building materials, furniture, and household goods;
- sales of non-durable goods, making up 60% of total sales. Non-durable goods include food, medicines, automotive fuel, and other small items.
A significant drawback of this indicator is the neglect of data on services provided, as well as strong volatility and frequent revisions of values, which makes forecasting this indicator difficult.
Retail Sales are calculated based on anonymous surveys of retail organizations of different sizes and directions in the country about the volume of products sold during a specified period of time.
How Does the Publication of Retail Sales in the US Affect the Dollar Exchange Rate?
Retail sales have a significant impact on the market in the medium term. An increase in retail sales figures indicates a favorable development of the country’s economy, which leads to an increase in the US dollar exchange rate in normal market conditions, as well as investment interest in risky assets.
When is the retail sales report published?
- Country of publication: United States
- Publication date: mid-month at 16:30 (MSK)
- Source: U.S. Census Bureau
- Web site: www.census.gov/retail/index.html
- Significance: high
Quotes
Key Macroeconomic Indicators of the US
- Speech by Janet Yellen (Chair of the Fed)
- Nonfarm Payrolls (NP, NFP)
- Change in employment in the non-agricultural sector from ADP (ADP Nonfarm Employment Change)
FAQ
What are retail sales?
Retail sales are an economic indicator reflecting changes in sales volume in the retail sector of the United States.
How are retail sales calculated?
Retail sales are calculated based on anonymous surveys of retail organizations about the volume of products sold during a specified period of time.
How do retail sales affect the dollar?
An increase in retail sales figures indicates a favorable development of the country’s economy, which can lead to an increase in the US dollar exchange rate.
