What this release is
The Retail Sales m/m (USD) report tracks the total value of sales from retail establishments in the United States, reflecting the monthly change in consumer spending. This data provides insight into the health of the consumer sector, a significant component of the economy. The official source for this monthly release is census.gov.
Forex traders watch this release because consumer spending is a major driver of economic growth. Stronger retail sales can suggest a robust economy, which might influence the central bank’s monetary policy decisions, potentially affecting the valuation of the US Dollar. Conversely, weaker sales could indicate slowing economic activity.
The market typically focuses on the headline month over month percentage change. Traders also monitor any revisions to previous months’ data, as these can provide additional context about underlying trends. The release’s monthly cadence allows for regular assessment of consumer activity.