Retail sales in Australia rose 1.9 percent on the month in January, rebounding sharply from a drop of 4.0 percent in December, while year-over-year growth was unchanged at 7.5 percent. Officials note that changes in the timing of late-year sales and cost of living pressures are driving a change in consumer spending patterns, making seasonal adjustment of the data more challenging.

Sales rose on the month for all of Australia's states and territories, with the second and third most populous states, Victoria and Queensland, recording growth well above and below the national average respectively. Sales rose particularly sharply for department stores and for clothing and household goods but were close to flat for food retailing.

Retail sales are expected to rise 1.6 percent on the month in January after falling a steep 3.9 percent in December.

Retail sales measure the total receipts at stores that sell durable and nondurable goods. The Retail Business Survey covers all employing retail trade businesses who predominantly sell to households.

With consumer spending a large part of the economy, market players continually monitor spending patterns. The pattern in consumer spending is often the foremost influence on stock and bond markets. For stocks, strong economic growth translates to healthy corporate profits and higher stock prices. For bonds, the focus is whether economic growth goes overboard and leads to inflation. Ideally, the economy walks that fine line between strong growth and excessive (inflationary) growth.

Retail sales not only give you a sense of the overall picture, but also the trends among different types of retailers. Especially strong apparel or electronics sales can indicate strength in those industries, for example. These trends from the retail sales data can help you spot specific investment opportunities, without having to wait for a company's quarterly or annual report.