Retail sales in Australia rose 0.3 percent on the month in January after falling 0.1 percent in December, with year-over-year growth slowing from 4.6 percent to 3.8 percent. Performance was mixed on a regional basis, with sales falling in the most populous state, New South Wales, but rising 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 bigger increases than the headline increase, partly offset by a big drop in sales of household goods.

Credit card data and a decent sales momentum into year end suggest sales rose by 0.3 percent in January after slipping by 0.1 percent in December.

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.