Retail sales are a coincident economic indicator because they provide information about current consumer spending behavior and are closely tied to overall economic activity. Retail sales refer to the total amount of sales made by retailers for goods and services purchased by consumers.

Unlike leading economic indicators, coincident indicators move in tandem with the overall economy and provide a current snapshot of economic activity. Retail sales are considered a coincident indicator because they reflect current consumer spending behavior and are closely tied to overall economic activity.

Increases in retail sales indicate that consumers are spending more money on goods and services, which can boost economic growth. Conversely, decreases in retail sales suggest that consumers are spending less, which can lead to slower economic growth.

Retail sales are also closely watched by policymakers and economists as they can provide insights into the effectiveness of economic policies and the health of the economy. For example, if retail sales suddenly drop, policymakers may consider implementing stimulus measures to encourage consumer spending and boost economic activity.

Overall, retail sales are a valuable coincident indicator because they provide a current snapshot of consumer spending behavior and reflect changes in overall economic activity.