Retail sales rose again in October. Following a downwardly revised 0.5 percent monthly increase in September, volumes advanced a further 0.2 percent, their third straight gain. The rise lifted yearly growth from minus 1.2 percent to minus 0.1 percent, its fourth consecutive negative print but well above the market consensus and also a 4-month high.

Purchases of food, drink and tobacco were 0.2 percent lower on the month while the non-food sector dipped 0.1 percent. Auto fuel was down fully 2.0 percent and excluding this category, sales were up 0.4 percent.

The October gain leaves total volumes sales 0.7 percent above their average level in the third quarter when they fell 0.5 percent. This bodes well for a positive impact from the retail sector on fourth quarter GDP growth although with consumer confidence having tumbled last month, any boost is likely to be only small. Still, today's update raises the Swiss RPI to 1 and the RPI-P to exactly zero, the first time since January that at least one measure has not been sub-zero.

Yearly sales growth is expected to slide from minus 0.6 percent to minus 1.2 percent.

Retail sales measure the total receipts at stores that sell durable and nondurable goods. The survey comprises around 4,000 companies with the small-sized firms asked to provide monthly turnover data on a quarterly basis. Statistics are provided in both nominal and volume measures; the latter is the more important for financial markets. The headline figure is the annual growth in sales volumes adjusted for differences in trading days. Seasonally adjusted monthly changes are also provided. Details are limited in the first estimate but a more complete picture is provided with the following month's release.

Consumer spending accounts for a large portion of the economy, so if you know what consumers are up to, you will have a pretty good idea on where the economy is headed. Needless to say, that is a big advantage for investors. 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 big picture, but also the trends among different types of retailers. Perhaps auto sales are especially strong or apparel sales are showing exceptional weakness. 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.