Investing.com - Retail sales in the U.S. bounced back in September from a previous decline, bolstering optimism about consumer spending being able to push economic growth in the third quarter, official data showed on Friday.
In a report, the U.S. Commerce Department said that retail sales rose 0.6% in September from the prior month. That was in line with the consensus forecast. August retail sales decreased 0.2%, whose figure was revised from an initial 0.3% decline.
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 0.5% in September, compared to forecasts for an advance of 0.4%. Core sales in August were revised to a 0.2% decline from the prior 0.1% drop
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 producer price index for September, the dollar remained broadly higher. EUR/USD was trading at 1.1015 from around 1.1003 ahead of the release of the data, GBP/USD was at 1.2230 from 1.227 earlier, while USD/JPY was at 104.20 from 104.29 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 97.81, compared to 97.89 ahead of the report.
Meanwhile, U.S. stock futures moved higher ahead of the market open. The Dow futures pointed to a gain of 0.45%, the S&P 500 futures traded up 0.39%, while the Nasdaq 100 futures rose 0.36%.
Elsewhere, in the commodities market, gold futures traded at $1,251.15 a troy ounce, compared to $1,249.50 ahead of the data, while crude oil traded at $50.77 a barrel from $50.66 earlier.