What this release is
Retail Inventories excluding Autos month-over-month measures the change in the total value of goods held by retailers, excluding motor vehicles and parts dealers, from the previous month. This monthly data, which offers insight into the consumer sector, is published by census.gov.
Forex traders monitor this release because retail inventory levels reflect the balance between consumer demand and business supply. A significant increase in inventories may suggest weaker consumer spending or overstocking, potentially signaling a slowdown in economic activity. Conversely, a notable decrease might indicate robust demand. These trends can influence expectations for future economic growth and inflation, which are key factors in central bank monetary policy decisions and, consequently, the valuation of the US Dollar.
After past releases, market participants typically focus on the headline month-over-month percentage change. Revisions to prior month’s data are also closely watched, as they can alter the overall picture of inventory trends. This release has a typical impact rating of Medium, meaning it can prompt noticeable market reactions, especially when the figures deviate significantly from expectations.