Retail sales in Australia rose 0.6 percent on the month in October after an increase of 0.1 percent in September, with year-over-year growth picking up from 2.3 percent to 3.4 percent. Performance was mixed on a regional basis, with sales appreciably weaker than the national average in four states, including the most populous state, New South Wales, but stronger in the second most populous state, Victoria, and in two other states. Household goods retailers and other retailers recorded sales growth stronger than the headline increase, offset by a fall in sales of clothing and by department stores.

Forecasters expect sales to rise 0.4 percent in October from September as spending recovers a bit from a muted showing in September. Sales were up 0.1 percent in September on the month and were up 2.3 percent on year. Tax cuts are seen helping consumers feel better about opening their wallets headed into the fourth quarter.

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.