Investing.com - Retail sales in the U.S. rose less than expected in September, dampening optimism over the strength of the economy and dimming the case for higher interest rates, official data showed on Wednesday.
In a report, the U.S. Commerce Department said that retail sales increased by a seasonally adjusted 0.1% last month, missing expectations for a gain of 0.2%. Retail sales for August were revised down to a flat reading from a previously reported increase of 0.2%.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.
Core retail sales, which exclude automobile sales, declined by a seasonally adjusted 0.3% in September, worse than forecasts for a fall of 0.1%. Core sales in August decreased 0.1%, whose figure was revised from a previously reported gain of 0.1%.
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.
EUR/USD was trading at 1.1439 from around 1.1410 ahead of the release of the data, GBP/USD was at 1.5417 from 1.5379 earlier, while USD/JPY was at 119.41 from 119.64 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 94.32, compared to 95.53 ahead of the report.
Meanwhile, U.S. stock futures pointed to a higher open. The Dow futures pointed to a gain of 0.1%, the S&P 500 futures ticked up 0.1%, while the Nasdaq 100 futures advanced 0.1%.
Elsewhere, in the commodities market, gold futures traded at $1,171.40 a troy ounce, compared to $1,164.40 ahead of the data, while crude oil traded at $46.74 a barrel from $46.69 earlier.