U.S. retail sales unexpectedly decline in June
Investing.com
Published Jul 14, 2017 08:35AM ET
U.S. retail sales fall 0.2% in June compared to forecast for a gain of 0.1%
Investing.com – Retail sales unexpectedly fell in June, underlining concern about consumer spending being able to push economic growth, official data showed on Friday.
In a report, the U.S. Commerce Department said that retail sales fell 0.2% in June from the prior month, below forecasts for a gain of 0.1%. May’s retail sales decreased by 0.1% which was an upward revision from an initial 0.3% decline.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.
Core retail sales, which exclude automobile sales, unexpectedly decreased by a seasonally adjusted 0.2% in June, missing consensus expectations for a 0.2% advance. Core sales in the prior month fell by 0.3%.
Core sales correspond most closely with the consumer spending component of the government's gross domestic product report. Consumer spending accounts for as much as 70% of U.S. economic growth.
After the report, which was released simultaneously with inflation data for the same month, the dollar weakened. EUR/USD was trading at 1.1434 from around 1.1418 ahead of the release of the data, GBP/USD was at 1.2992, compared to 1.2974 previously, while USD/JPY was at 112.50 from 113.05 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 95.18, compared to 95.41 ahead of the report.
Meanwhile, U.S. stock futures pointed to a mixed open. The Dow futures dropped 5 points or 0.02%, the S&P 500 futures were unchanged, while the Nasdaq 100 futures rose 13 points, or 0.23%.
Elsewhere, in the commodities market, gold futures traded at $1,228.05 a troy ounce, compared to $1,221.71 ahead of the data, while crude oil traded at $46.58, compared to $46.62 prior to the release.
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Written By: Investing.com
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