U.s. Gross Domestic Product - 1361 Words

hiding something behind the actual unemployment rate in America or people in America are still feeling the effects of the 2008 recession. The housing market crash in the fourth quarter of 2008 may still be affecting many families today. Since consumer spending drives two thirds of the economy, according to econoday, it also affects retail sales because when consumers are confident in their economy, there are willing to buy more (Econoday: â€Å"Consumer confidence†). This, in turn, affects U.S. retail sales which is also a reflection of the U.S. Gross Domestic Product. These indicators have a chain reaction because when one changes, it affects the rest. (Ferreira, 2015). As we can see from both the consumer confidence and retail sales†¦show more content†¦According to Lynn Franco, she says that consumers are cautious heading into 2016 and expect little changes in business conditions. Next year is definitely not looking very promising for the United States. Retail Sales Indicator The retail sales indicator measures the dollar value of merchandise sold within the retail industry, which includes traditional retailers selling via internet but excludes companies conducting non-retail operations such as travel, ticketing, and financial services (â€Å"FAQ†). The retail sales is a leading indicator because it gives us a glimpse of what we can expect in the following months in the economy. It is important to keep in mind that leading indicators are not always accurate and are subject to revisions. The retail sales indicator covers the previous month’s data and is typically released on or around the 13th of each month. The report is usually presented in one of two ways: with auto sales being counted and without auto sales being counted since auto sales can skew the data due to their high price (â€Å"Investopedia: retail sales†, n.d.). Companies of all sizes are used in the survey, from large corporations such as Wal-Mart t o independent mom and pop shops. The methodology behind the survey is conducted by the U.S. Census Bureau and the U.S. Department Commerce (United States Bureau: â€Å"Monthly Annual retail trade: Annual retail trade survey methodology†, 2015).