U.S. Retail Sales Rise Much More Than Forecast in November

© Reuters. U.S. retail sales growth beats forecasts in November

Investing.com - Retail sales in the U.S. rose for the third-straight month in November, underling optimism over the health of the economy and supporting the case for more interest rate hikes next year.

Retail sales increased by a seasonally adjusted 0.8% last month, according to the U.S. Commerce Department, easily surpassing expectations for a gain of 0.3%. Retail sales for October were revised to a gain of 0.5% from a previously reported 0.2% increase.

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

Core retail sales, which exclude automobile sales, jumped by a seasonally adjusted 1.0%, compared to forecasts for a gain of 0.7%. Core sales in October rose 0.4%, whose figure was revised from a previously reported gain of 0.1%.

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.

USD/JPY was at 112.68 from around 112.60 ahead of the release of the data, EUR/USD was trading at 1.1837 from around 1.1845 earlier, while GBP/USD was at 1.3427 from 1.3435.

The US dollar index, which tracks the greenback against a basket of six major rivals, was at 93.39, compared to 93.34 ahead of the report.

Meanwhile, U.S. stock futures pointed to a slightly higher open. The blue-chip Dow futures tacked on 0.1%, the S&P 500 futures added 0.1%, while the tech-heavy Nasdaq 100 futures climbed 0.1%.

Elsewhere, in the commodities market, gold futures traded at $1,257.70 a troy ounce, compared to $1,259.10 ahead of the data, while crude oil traded at $56.34 a barrel from $56.33 earlier.