Retail sales in Australia rose 1.2 percent on the month in June after advancing 0.2 percent in May, with year-over-year growth picking up from 3.3 percent to 4.9 percent. Sales growth at or above the national average in the three most populous states, New South Wales, Victoria, and Queensland, but mixed elsewhere. Household goods sales and sales for department stores were strong.

The retail sales series is now discontinued, with the recently-upgraded monthly household spending indicator (MHSI) now the main series tracking the strength of consumer activity in Australia. The MHSI has broader coverage and more closely aligns with the measure of household expenditure in the national accounts. The June release for this series will be published next week.

Another modest increase of 0.3 percent is the call for June after rising 0.2 percent in May.

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.