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U.S. retail sales rise 0.8% in July

Published 08/14/2012, 08:36 AM
EUR/USD
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Investing.com - Retail sales in the U.S. rose for the first time in four months in July, posting the largest monthly gain since February, official data showed on Tuesday.  

In a report, the U.S. Census Bureau said that retail sales rose by a seasonally adjusted 0.8% in July, easily surpassing expectations for a 0.3% increase.

Retail sales in June were revised to a 0.7% decline from a previously reported drop of 0.5%.

Year-on-year, retail sales rose at an annualized rate of 3.2% in July, after advancing at a rate of 2.6% 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 0.8% last month. Analysts had expected core retail sales to increase 0.4% last month, after falling by a downwardly revised 0.8% in June.

On an annualized rate, core retail sales rose 3.2% last month, after rising 2.6% in June.

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 losses against the euro, with EUR/USD adding 0.17% to trade at 1.2354.

Meanwhile, U.S. stock future indices added to gains. The Dow Jones Industrial Average futures pointed to a gain of 0.35% at the open, S&P 500 futures pointed to a rise of 0.4%, while the Nasdaq 100 futures pointed to a gain of 0.4%.  

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