Retail sales in Australia fell in June for the first time this year, with officials highlighting the impact of cost of living pressures on consumer spending. Sales fell 0.8 percent on the month in June after an increase of 0.7 percent in May, while year-over-year growth slowed from 4.2 percent to 2.3 percent.

Sales fell by more than the national average in the two most populous states, New South Wales and Victoria, and close to the average in the third most populous state, Queensland. These falls were partly offset by increases elsewhere. Sales fell sharply for department stores and clothing retailers but were close to flat for food and household goods retailers.

Retail sales, which in May surprised on the upside with a 0.7 percent rise, are expected to hold unchanged in June.

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.