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U.S. retail sales fall 0.8% in January, core sales drop 0.9%

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Investing.com -

Investing.com - Retail sales in the U.S. fell more than expected in January, dampening optimism over the strength of the economic recovery, official data showed on Thursday.

In a report, the U.S. Commerce Department said that retail sales declined by a seasonally adjusted 0.8% last month, worse than expectations for a drop of 0.5%. Retail sales fell by 0.9% in December.

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

Core retail sales, which exclude automobile sales, slumped by a seasonally adjusted 0.9% in December, disappointing forecasts for a 0.4% decline. Core sales in November dropped 0.9%, upwardly revised from a previously reported fall of 1.0%.

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.

EUR/USD was trading at 1.1344 from around 1.1335 ahead of the release of the data, while GBP/USD was at 1.5380 from 1.5362 earlier, while USD/JPY was at 119.43 from 119.71 earlier.

The US dollar index, which tracks the greenback against a basket of six major rivals, was at 94.70, compared to 94.79 ahead of the report.

Meanwhile, U.S. stock futures trimmed gains. The Dow futures pointed to a gain of 0.35% at the open, the S&P 500 futures rose 0.4%, while the Nasdaq 100 futures tacked on 0.45%.

Elsewhere, in the commodities market, gold futures traded at $1,226.50 a troy ounce, compared to $1,223.60 ahead of the data, while crude oil traded at $49.90 a barrel from $49.97 earlier.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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