Investing.com - Retail sales in the U.S. rose more than expected in June, raising hopes for consumer spending to push economic growth at the end of the second quarter, official data showed on Friday.
In a report, the U.S. Commerce Department said that retail sales increased by a seasonally adjusted 0.6% last month, compared to the forecast for a rise of 0.1%. Retail sales for May increased 0.2%, whose figure was revised from an initial 0.5% gain.
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 0.7% in June, compared to forecasts for an advance of 0.4%. Core sales in May gained 0.4%, and the figure went unrevised.
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 June consumer prices, the dollar strengthened. EUR/USD was trading at 1.1117 from around 1.1129 ahead of the release of the data, GBP/USD was at 1.3336 from 1.3359 earlier, while USD/JPY was at 105.95 from 105.76 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 96.16, compared to 96.04 ahead of the report.
Meanwhile, U.S. stock futures moved slightly higher after the two releases, moving from a flat read to slight gains. The Dow futures pointed to a gain of 0.18%, the S&P 500 futures rose 0.20%, while the Nasdaq 100 futures inched up 0.09%.
Elsewhere, in the commodities market, gold futures traded at 1,330.15 a troy ounce, compared to $1,334.47 ahead of the data, while crude oil traded at $46.14 a barrel from $45.80 earlier.