Investing.com - Retail sales in the U.S. rose more than expected in October, bolstering optimism about consumer spending being able to push economic growth at the start of the fourth quarter, official data showed on Tuesday.
In a report, the U.S. Commerce Department said that retail sales rose 0.8% in October from the prior month, compared to expectations for a 0.6% increase. September retail sales increased 1.0%, whose figure was revised from an initial 0.6% rise.
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 0.8% in October, compared to forecasts for an advance of 0.5%. Core sales in September were revised to a 0.7% advance from the prior 0.5% gain.
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 NY Empire State manufacturing index, along with import and export prices, EUR/USD was trading at 1.0751 from around 1.0757 ahead of the release of the data, GBP/USD was unchanged at 1.2425, while USD/JPY was at 108.42 from 108.31 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 100.00, compared to 99.95 ahead of the report.
Meanwhile, U.S. stock futures moved slightly higher ahead of the market open. The Dow futures pointed to a gain of 0.09%, the S&P 500 futures traded up 0.24%, while the Nasdaq 100 futures rose 0.66%.
Elsewhere, in the commodities market, gold futures traded at $1,226.00 a troy ounce, compared to $1,224.70 ahead of the data, while crude oil traded at $44.74 a barrel from $44.61 earlier.
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