| Actual | Previous | |
| Month over Month | 0.2% | 0.0% |
| Year over Year | 2.2% | 1.6% |
Highlights
Retail sales rose a modest 0.2 percent, seasonally adjusted, in May and were 2.2 percent higher than they were a year ago. Nearly all major sub-sectors saw increased sales in May.
The year-on-gain was led by a 4.9 percent increase in for sales of household appliances and AV equipment followed by a 4.2 percent increase in clothing. Computers and telecommunications equipment was up 4.1 percent with sporting goods up 3.7 percent. The only category registering a decline was durable and non-durable household equipment which fell 0.2 percent.
A gain of 11.9 percent year-on-year at online retailers outpaced those of other main distribution channels. Large retailers saw sales up 2.7 percent while at small-scale operators they rose 0.9 percent.
It's too soon to say whether the result is due to increased consumer optimism and pent-up demand resulting from caution around the conflict in the Middle East.
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.