Investing.com - Retail sales in the U.S. were flat in July with the core number registering an unexpected decline, raising concern about consumer spending being able to push economic growth at the beginning of the third quarter, official data showed on Friday.
In a report, the U.S. Commerce Department said that retail sales were flat from the prior month, compared to the forecast for a rise of 0.4%. June retail sales for increased 0.8%, whose figure was revised from an initial 0.6% 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, unexpectedly fell by a seasonally adjusted 0.3% in July, compared to forecasts for an advance of 0.2%. Core sales in June gained 0.9%, upwardly revised from an initial 0.7% 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.
After the report, which was released simultaneously with the July producer price index, the dollar edged lower. EUR/USD was trading at 1.1208 from around 1.1166 ahead of the release of the data, GBP/USD was at 1.3023 from 1.2970 earlier, while USD/JPY was at 101.29 from 101.94 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 95.30, compared to 95.73 ahead of the report.
Meanwhile, U.S. stock futures moved lower on the news. The Dow futures pointed to a loss of 0.09%, the S&P 500 futures lost 0.09%, while the Nasdaq 100 futures ticked down 0.05%.
Elsewhere, in the commodities market, gold futures traded at $1,359.75 a troy ounce, compared to $1,347.65 ahead of the data, while crude oil traded at $43.74 a barrel from $43.49 earlier.