Source The Census Bureau of the Department of Commerce
The index represents the goods and services price changes in retail stores. It characterizes the consumer expenses and demand level.
Besides the basic value,the index calculates the value excluding auto sales due to their highly variable nature. The index that does not include the auto sales represents more objective information.
This index is one of the most important ones to show the American economic state, because 80% of the country’s GDP is insured by its end-customers.
The retail prices index is published with the adjustments for seasonal factors, holidays and working days number, however excluding the price changes adjustments. The research is based on the 5000 companies studies, comprising 65% of the overall trade volume.
Effect of market
The index has a strong influence on the markets.
The index growth or the actual value rise exceeding the forecast may push down or raise the US Dollar rate depending on the market situations.