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U.S. retail sales rise 0.5% in December

Published 01/15/2013, 08:34 AM
EUR/USD
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Investing.com - Retail sales in the U.S. rose more-than-expected in December, while core retail sales also beat expectations, official data showed on Tuesday.  

In a report, the U.S. Census Bureau said that retail sales rose by a seasonally adjusted 0.5% in December, above expectations for a 0.2% gain.

Retail sales for November were revised to a 0.4% increase from a previously reported gain of 0.3%.

Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.

Core retail sales, which exclude automobile sales, increased by a seasonally adjusted 0.3%, beating expectations for a 0.2% gain.

Core sales for November were revised down to a 0.1% drop from a previously reported flat reading.

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.

Following the release of the data, the U.S. dollar held on to gains against the euro, with EUR/USD dipping 0.42% to trade at 1.3326.

Meanwhile, U.S. stock future indices remained lower. The Dow Jones Industrial Average futures pointed to a loss of 0.3% at the open, S&P 500 futures pointed to a drop of 0.4%, while the Nasdaq 100 futures pointed to a decline of 0.3%.  

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