Retail sales in Australia fell 0.1 percent on the month in December after an increase of 0.8 percent in November, with year-over-year growth accelerating from 3.0 percent to 4.6 percent. Performance was mixed on a regional basis, with sales up slightly in the most populous state, New South Wales, but falling at a more pronounced rate than the national average in the second and third most populous states, Victoria and Queensland. Clothing retailers, cafe and restaurants, and other retailers recorded sales bigger declines than the headline fall, offset by stronger growth in sales of household goods.

After two strong months in October and November, sales faltered in December with expectations for a decline of 0.3 percent on the month.

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.