United States Retail Sales; Massive Holiday Sales, With E-commerce Racking up Gains
Retail sale is an economic indicator in the United States that keeps inventory of the demand for finished goods, by measuring the purchases of durable and non-durable goods over a defined time. It is the primary gauge of consumer spending, which accounts for the majority of the overall economic activities.
The United States economy is booming even though collective anxiety levels remain uncomfortably high as still elevated levels of COVID-19 cases and deaths have kept the virus a central consideration for many households, as consumers are no longer receiving stimulus money, and inflation is at its highest in decades.
Despite concerns about supply chains, inflation, and the pandemic, fundamentals are generally strong, and households have continually proved resilient in their spending over the past few months. Consumer expectations about the labor market are decidedly optimistic, and Americans have accumulated wealth via stimulus and asset holdings over the past couple of months.
United States retail sales rose 8.5% during last year’s holiday powered by soaring e-commerce sales, as shoppers were eager to secure their gifts ahead of the retail rush, with conversations surrounding supply chain and labor supply issues.
However, it is difficult to gauge the long-term impacts of the pandemic, at present, it is clear that spending patterns continue to be heavily influenced by health considerations and related lifestyle choices such as more time at home for work, school, and pleasure.
With the continuous decline in the unemployment rate at 3.9%, from the previous 4.2%, experts predict that the holiday sales will amount to $888 billion, an increase of 16.6% above last year’s sales.
According to Lynn Franco, senior director of economic indicators at the Conference Board, both confidence and consumer spending will continue to face headwinds from rising prices. Economists believe that the economy will grow by 7% in the fourth quarter of 2021.
An increase in Retail Sales will result in US dollar Index strength while a decrease in Retail Sales will result in a US dollar Index decline.
Increased volatility is anticipated, and traders should always be aware that a volatile market presents great opportunities for making profits, as the increase can cause market swings for traders to capitalize on.
In response to the news release, trade the forex market with the following trading instruments on ACT Brokers platform, as the pair are mostly affected by the data release; EURUSD, GBPUSD, XAUUSD, USDJPY, USDCHF, AUDUSD, NZDUSD, US30, US100, USOIL, etc.
Time Schedule for Retail Sales release:
Date: Friday, December 14th, 2022
Author: Francis Idowu
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