Also known as ‘real retail sales,’ this metric captures consumer spending at retail outlets, adjusted for inflation.

Rising real sales indicate robust consumer activity and a flourishing economy.

A dip in real sales often suggests that households are tightening their belts, which can be an early warning of a downturn.

In recessionary times, a decline in real sales can exacerbate the economic slowdown as businesses grapple with lower revenue and reduced inventory turnover.