Investing.com - Retail sales in the U.S. rose less than expected in December, dampening optimism about consumer spending being able to push economic growth during the fourth quarter, official data showed on Friday.
In a report, the U.S. Commerce Department said that retail sales rose 0.6% in December from the prior month, compared to expectations for a 0.7% increase. November retail sales increased 0.2%, whose figure was revised from an initial 0.1% rise.
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 0.2% in December, compared to forecasts for an advance of 0.5%. Core sales in the prior month were revised to a 0.3% advance from the prior 0.2% gain.
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 producer prices, EUR/USD was trading at 1.0634 from around 1.0663 ahead of the release of the data, GBP/USD was at 1.2147, compared to 1.2179 previously, while USD/JPY was at 114.78 from 114.29 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 101.37, compared to 101.06 ahead of the report.
Meanwhile, U.S. stock futures traded slightly higher ahead of the market open. The Dow futures inched up 15 points, or 0.07%, the S&P 500 futures edged forward 2 points, or 0.08%, while the Nasdaq 100 futures advanced 7 points, or 0.14%.
Elsewhere, in the commodities market, gold futures traded at $1,196.50 a troy ounce, compared to $1,199.65 ahead of the data, while crude oil traded at $52.61, compared to $52.59 prior to the release.