The retail trade sector is one of the major sources of jobs in the U.S. economy, consistently accounting for about 21 percent of all non-farm jobs in the private sector. Retail establishments are primarily engaged in selling merchandise for personal or household consumption.
Retailers sell an ever-changing combination of durable and nondurable merchandise.
Personal Income Growing. With a strong economy, personal income has been growing. This is a key factor that drives retail sales and will mean additional increases in retail sales for merchants. Increases in personal income have helped reverse the decline in real consumer spending. The Federal Reserve has raised the federal funds rate from 4.75 percent to 6.5 percent and more hikes may be in store.