Key points
- Major component of GDP consumption.
- Volatile month-to-month, watch trends.
- Excludes services spending.
Example
If retail sales rise 0.6% month-over-month but the control group is flat, GDP contribution may be muted despite the headline beat.
In history
US retail sales collapsed -14.7% month-over-month in April 2020, the steepest drop on record, then rebounded double digits as stimulus checks arrived.
Related terms