Investing.com - Retail sales in the U.S. rose more than expected in July, boosting optimism over the health of the economy.
The upbeat data underlined expectations that the Federal Reserve will hike interest rates two more times this year, with the next move higher coming at its September meeting.
Retail sales increased by a seasonally adjusted 0.5% last month, according to the U.S. Commerce Department, surpassing expectations for a gain of 0.2%.
Retail sales for June were revised down to a gain of 0.2% from a previously reported 0.5% increase.
Core retail sales, which exclude automobile sales, jumped by a seasonally adjusted 0.6%, compared to forecasts for a gain of 0.4%. Core sales rose by a downwardly revised 0.2% in the preceding month.
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.