| Actual | Previous | |
|---|---|---|
| Month over Month | 0.5% | -0.5% |
| Year over Year | 1.3% | 0.5% |
Highlights
Italian value-based retail sales rose 0.5 percent in October while increasing 1.3 percent year on year, with the monthly gain reversing a 0.5 percent decline in September, and the year-on-year rate expanding on the 0.5 percent growth the previous month.
Sales at large retailers were behind the year-on-year gain, as those stores saw a 2.7 percent increase, led by a 3.0 percent increase in food sales. Smaller stores saw sales decline 0.5 percent from October of last year. At the same time, non-store retailers' sales rose 1.1 percent while gaining 4.6 percent on-line.
Among sectors, the largest increase was, by far, a 4.2 percent year-on-year gain for cosmetics and toiletries, while furniture and household good rose 1.8 percent, and pharmaceuticals rose 1.6 percent. On the flip side, sales of household appliances and audio-video goods declined 2.2 percent.
Today's data are encouraging, possibly reflecting optimism among consumers that the uncertainty around US tariffs has now been resolved to some degree. It sets a good foundation for the third quarter and should sales continue apace give underpinning to the broader economy.
Sales at large retailers were behind the year-on-year gain, as those stores saw a 2.7 percent increase, led by a 3.0 percent increase in food sales. Smaller stores saw sales decline 0.5 percent from October of last year. At the same time, non-store retailers' sales rose 1.1 percent while gaining 4.6 percent on-line.
Among sectors, the largest increase was, by far, a 4.2 percent year-on-year gain for cosmetics and toiletries, while furniture and household good rose 1.8 percent, and pharmaceuticals rose 1.6 percent. On the flip side, sales of household appliances and audio-video goods declined 2.2 percent.
Today's data are encouraging, possibly reflecting optimism among consumers that the uncertainty around US tariffs has now been resolved to some degree. It sets a good foundation for the third quarter and should sales continue apace give underpinning to the broader economy.
Definition
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.
Description
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.
