Retail sales were soft in September. A 0.5 percent monthly fall in volumes was the first setback since June and followed a smaller revised 0.1 percent gain in August. Annual growth slowed from 2.7 percent to 2.2 percent, a 3-month low and 0.3 percentage points below the market consensus.

September's monthly dip was attributable to a 1.8 percent drop in purchases of food, drink and tobacco and a 1.2 percent slide in auto fuel. Losses here masked a 1.0 percent advance in non-food sales (excluding auto fuel) that followed a 0.5 percent decrease in August.

Despite September's dip, today's update puts total third quarter sales 1.4 percent above their second quarter level making for a positive contribution from the sector to quarterly real GDP growth. Even so, with inflation so weak and the both the Swiss RPI (minus 46) and RPI-P (minus 31) now well below zero, the SNB would seem to have little choice but to ease policy yet again in December.

Yearly sales growth is expected to cool from 3.2 percent in August to 2.5 percent in September.

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.