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U.S. retail sales rise to 5-month high in February

Published 03/13/2012, 08:35 AM
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Investing.com - Retail sales in the U.S. increased in line with expectations in February, rising to the highest level in five months, official data showed on Tuesday.

In a report, the U.S. Census Bureau said that retail sales rose by a seasonally adjusted 1.1% in February, in line with expectations.

January’s figure was revised up to a 0.6% increase from a previously reported gain of 0.4%.

Year-on-year, retail sales rose at an annualized rate of 6.5% in February, after advancing at a revised rate of 6.3% in the previous month.

Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.

Core retail sales, which exclude automobile sales, rose by 0.9% last month, above expectations for a 0.8% gain.

Core retail sales for January were revised to a 1.1% gain from a previously reported 0.7% rise.

Core retail sales rose at an annualized rate of 6.4% last month, unchanged from January.

Core sales correspond most closely with the consumer spending component of the government's gross domestic product report.

Following the release of the data, the U.S. dollar added to gains against the euro, with EUR/USD shedding 0.52% to trade at 1.3087.

Meanwhile, U.S. stock index futures remained higher after the release of the data. The Dow Jones Industrial Average futures indicated a rise of 0.5%, S&P 500 futures pointed to a 0.65% gain, while the Nasdaq 100 futures added 0.7%.

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