What does the economic indicator "Retail Sales" commonly mean?

Retail sales in the US increased 0.4% mom in April of 2023, rebounding from two consecutive months of declines, but well below market forecasts of a 0.8% increase.

Retail sales measure the total number of sales at retail stores that sell goods and services to consumers. The accelerated retail sales growth suggests consumers have spent more and the economy is strong.

Retail sales data releases may have significant impacts on the financial markets.

For example, for US dollars, a higher-than-expected reading could be positive, and a lower-than-expected reading could be negative.

Therefore, investors may spot specific investment opportunities by reading retail sales data carefully.