Macro & Economy

Retail Sales

How much consumers spent in stores and online over a month — it shows the strength of consumption, which makes up about 70% of the economy.

In plain terms

Retail sales measure how much people spent in stores, restaurants, and online over a month. It most directly shows whether consumption rose or fell.

The US economy is consumption-centered, with consumption making up about 70%. So retail sales are a key window into "whether the US economy is running well."

What it tells you

Strong consumption is a sign of rising company revenue and a working economy. Sectors like consumer goods, retail, and travel are directly tied to the retail-sales trend.

When retail sales turn down, it means consumers are starting to close their wallets, sometimes read as an early sign of slowing growth.

Formula

retail sales = the monthly change in total sales of retail stores, restaurants, online, etc. (US Commerce Department)

What high or low means

Strong retail sales are positive for the economy, but in a hot-price phase they can be read as "too-strong consumption stoking prices → rate burden." Like the jobs report, they are read two ways by phase.

Looking at "core retail sales," which strips out volatile items like autos and fuel, shows the real consumption trend more clearly.

Caution

Retail sales are on a "dollar" basis, so price increases are mixed in. When prices rise, buying the same amount costs more, so you have to distinguish whether real consumption grew or only the dollar figure rose.

A single month's number swings with weather, holidays, and sale seasons. Read the trend rather than one release.

Retail sales are a macro indicator. This term is background for understanding market news. (※ Our screen handles individual companies' SEC-filed financials.)

Metrics to read alongside

Consumer Sentiment

If retail sales are "money actually spent," consumer sentiment is "the will to spend ahead." Sentiment often cools first and consumption follows, so together they let you gauge the present and future of consumption.

Revenue (Sales)

Strong consumption raises the revenue of consumer-goods and retail companies. Knowing the retail-sales trend helps you understand the backdrop of such companies' revenue.

See it in real stocks

Search US stocks on Stocklore to see Retail and other financial metrics alongside the sector average.

AAPL Apple Inc.MSFT Microsoft Corporation NVDA NVIDIA Corporation AMZN Amazon.com, Inc.Search stocks →

Exactly how Stocklore computes this metric (formula, thresholds, SEC source) is on the methodology page.

This explanation is for information and reference only and is not a recommendation to buy or sell any security. Investment decisions and their consequences are your own.