Prior was +0.2%
Details:
Ex-autos vs -0.1% expectedPrior ex autos +0.8%Ex autos and gas vs +0.5% priorControl group vs +0.5% expectedPrior control +0.7%Nominal retail sales y/y +% vs +6.9% prior
Retail sales are one of the most watched gauges of household demand because consumer spending makes up a large share of economic activity. The report measures sales at retail stores and food services establishments, covering categories such as autos, gasoline, furniture, clothing, electronics, building materials and restaurants.
The headline number shows the monthly change in total sales, but the details often matter more. Auto sales can be volatile, so markets also focus on sales excluding autos. Gasoline prices can distort the total as well, which is why economists sometimes look at figures excluding both autos and gasoline.
Another key measure is the control group, which excludes several volatile categories and feeds more directly into estimates of consumer spending in GDP. That makes it especially useful for judging the underlying pace of demand.
Retail sales are reported in nominal terms, meaning they are not adjusted for inflation. A rise in prices can therefore lift sales even when consumers are buying fewer goods. The report is also subject to revisions, and the prior month can be just as important as the latest print.
Because the data are timely, retail sales can quickly shift expectations for growth, interest rates and the consumer outlook.
This article was written by Adam Button at investinglive.com.