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U.S. retail sales flat in July, core sales inch up 0.1%

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Investing.com -

Investing.com - Retail sales in the U.S. were flat in July, dampening optimism over the strength of the economic recovery, official data showed on Wednesday.

In a report, the U.S. Commerce Department said that retail sales were flat last month, disappointing expectations for a 0.2% increase. Retail sales for June rose by 0.2%.

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

Core retail sales, which exclude automobile sales, eased up by a seasonally adjusted 0.1% in July, below forecasts for a 0.4% increase. Core sales in June advanced by 0.4%.

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 turned lower against the euro, with EUR/USD rising 0.07% to trade at 1.3379, compared to 1.3364 ahead of the data.

Meanwhile, the outlook for U.S. equity markets was modestly higher. The Dow indicated a gain of 0.35%, the S&P 500 pointed to a rise of 0.45%, while the Nasdaq 100 indicated an increase of 0.45%.

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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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