Investing.com - Retail sales in the U.S. rose less than expected in June, dampening optimism over the strength of the economic recovery, official data showed on Tuesday.
In a report, the U.S. Commerce Department said that retail sales inched up by a seasonally adjusted 0.2% last month, missing expectations for a 0.6% increase. Retail sales for May were revised up to a 0.5% gain from a previously reported increase 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, eased up by a seasonally adjusted 0.4% in June, disappointing forecasts for a 0.5% increase. Core sales in May were revised up to a rise of 0.4% from a previously reported 0.1% 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.
Following the release of the data, the U.S. dollar held on to gains against the euro, with EUR/USD shedding 0.04% to trade at 1.3614.
Meanwhile, the outlook for U.S. equity markets was modestly higher. The Dow futures indicated a gain of 0.15%, the S&P 500 pointed to a rise of 0.1%, while the Nasdaq 100 indicated an increase of 0.1%.