Forexpros – Retail sales in the U.S. increased less-than-expected in April, growing at the weakest pace in four months, official data showed on Tuesday.
In a report, the U.S. Census Bureau said that retail sales inched up by a seasonally adjusted 0.1% in April, disappointing expectations for a 0.2% gain.
March’s figure was revised to a 0.7% increase from a previously reported gain of 0.8%.
Year-on-year, retail sales rose at an annualized rate of 6.4% in April, after advancing at a revised rate of 6.6% 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 0.1% last month, below expectations for a 0.2% gain, after rising by 0.8% in March.
On an annualized rate, core retail sales rose 5.9% last month, after rising 6.4% in March.
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 modest losses against the euro, with EUR/USD rising 0.14% to trade at 1.2840.
Meanwhile, U.S. stock future indices remained higher after the release of the data. The Dow Jones Industrial Average futures pointed to an increase of 0.5%, S&P 500 futures pointed to a gain of 0.6%, while the Nasdaq 100 futures pointed to a rise of 0.7%.
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