Investing.com – Retail sales unexpectedly fell in May, underlining concern about consumer spending being able to push economic growth, official data showed on Wednesday.
In a report, the U.S. Commerce Department said that retail sales fell 0.3% in May from the prior month, below forecasts for a gain of 0.1%. April retail sales increased 0.4%.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.
Core retail sales, which exclude automobile sales, decreased by a seasonally adjusted 0.3% in May, below consensus expectations for a 0.2% advance. Core sales in the prior month were revised upward to a 0.4% advance from the prior 0.3%.
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 inflation data for the same month, EUR/USD was trading at 1.1252 from around 1.1202 ahead of the release of the data, GBP/USD was at 1.2766, compared to 1.2735 previously, while USD/JPY was at 109.71 from 110.29 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 96.68, compared to 97.04 ahead of the report.
Meanwhile, U.S. stock futures pointed to a slightly higher open. The Dow futures gained 22 points or 0.10%, the S&P 500 futures advanced 1 point, or 0.03%, while the Nasdaq 100 futures rose 9 points, or 0.15%.
Elsewhere, in the commodities market, gold futures traded at $1,273.47 a troy ounce, compared to $1,267.05 ahead of the data, while crude oil traded at $46.13, compared to $46.12 prior to the release.