Question

If for example economic indicator retail trade increases by 0.1% or nothing over a month period is this considered a negligible ammount or would it affect economic forecasting.

Answer 1

Retail trade is the consumption part of the economy . Retail trading means business engaged in directly selling of goods to consumers . It is a key economic indicator . It is a component in the computation of Gross Domestic Product . Consumer spending is the biggest share is GDP . So even if it increases by 0.1% , it cannot be considered negligible . This means that consumers are spending more and we can expect an inflation . So it will affect economic forecasting .