For example, when spending increases, business activity increases thus stimulating the economy and driving foreign investment. This in turn will impact other key economic components such as durable goods orders, consumer confidence, balance of trade,The above categories are then weighted and accordingly using a sampling frame predefined by the U.S. Census Bureau and is subject to periodic changes.
Positive retail sales data cannot always be taken at face value as the figure produced by the RSI is not adjusted for. A positive figure once adjusted for CPI inflation can result in a net drop in retail sales. When inflation is high, the per dollar expenditure is reduced in terms of purchasing power which is why factoring in inflation is important for an all-inclusive representation of the economy.
As a general rule of thumb, improved retail sales usually translates to a positive for the home currency in question, while also adding to market volatility pre and post release. Following on with the U.S. as a template, retail sales data can have an influential impact on the) decision making process.
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