What are Retail Sales?
Definition of Retail Sales: The Census Bureau of U.S, a part of the trade department publishes the report of retail sales every month. This report measures the quantity of customer spending on different goods and services that the retailers have sold that includes durable and non durable products. Important components comprises of building materials, automobiles, departmental store, food store, drugstore and restaurants. The data is made on the basis of a survey of more than 12,000 retail organization’s and is regarded as a good sign showing the spending performance and its impact on the expansion. Consumer spending plays an important role in the domestic economy as the spending level is generally associated with nearly 70% of the GDP of the nation. On the other hand, the critics of such comparison says that the governments healthcare costs are included in the consumer spending and this is flawed as GDP is a measure of the gross domestic production rather than the spending. A material part of the consumer spending is designed for foreign produced materials which are helpful for the overseas economies but have a little effect on the growth of GDP. However, consumer spending leads the economy in the recessionary periods, depending on the earlier recoveries. Several business leaders need a change in the metric prior to the commitment of the corporate assets to move the production efforts.