Investing.com - Retail sales in the U.S. rose more than expected in May, raising hopes for a rebound in consumer spending in the second quarter, official data showed on Tuesday.
In a report, the U.S. Commerce Department said that retail sales increased by a seasonally adjusted 0.5% last month, compared to the forecast for a rise of 0.3%. Retail sales for April rose 1.3%.
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 0.4% in May, in line with forecasts. Core sales in April gained 0.8%.
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 report, which was released simultaneously with the May export and import price indices, EUR/USD was trading at 1.1229 from around 1.1228 ahead of the release of the data, GBP/USD was at 1.4141 from 1.4120 earlier, while USD/JPY was at 105.99 from 105.95 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 94.91, compared to 94.89 ahead of the report.
Meanwhile, U.S. stock futures pointed to a lower open. The Dow futures indicated a loss of 0.19%, the S&P 500 futures dropped 0.24%, while the Nasdaq 100 futures fell 0.30%.
Elsewhere, in the commodities market, gold futures traded at $1,286.20 a troy ounce, compared to $1,287.45 ahead of the data, while crude oil traded at $48.29 a barrel from $48.14 earlier.