November retail sales fell 0.4 percent on the month in value, indicative of declining consumer appetite. Volumes were down 0.6 percent, with food decreasing 0.6 percent and non-food decreasing 0.7 percent.

On a yearly basis, nominal sales rose 1.1 percent, as the value of food sales rose 2.8 percent and that of non-food slipped 0.1 percent. Volumes dropped 0.2 percent on the year, with food and non-food separately both down 0.2 percent. Within the non-food category the largest nominal decline was in computers and telecommunication equipment (down 2.8 percent) and shoes, leather goods and travel items (down 2.7 percent). This offset growth in cosmetic and toilet articles, which experienced the largest nominal growth (up 4.1 percent).

Compared to November last year, the value of retail sales for large-scale distribution grew 3.8 percent while small-scale distribution decreased by 0.9 percent. Non-store retail sales declined by 3.9 percent while E-commerce declined 3.3 percent.

Retail sales measure the total receipts at stores that sell durable and nondurable goods. The headline data are expressed in nominal terms but volume statistics are also available. Autos are excluded. Only a very limited breakdown of subsector performance is available in the first report but much greater detail is provided in the following month's release. The Italian National Institute of Statistics (Istat) is the main producer of official statistics in Italy.

With consumer spending a large part of the economy, market players continually monitor spending patterns. Retail sales are a measure of consumer well-being. 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.