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U.S. retail sales rise 0.1% in April, core sales flat

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Investing.com -

Investing.com - Retail sales in the U.S. rose less than expected in April, dampening optimism over the strength of the economic recovery, official data showed on Tuesday.

In a report, the U.S. Commerce Department said that retail sales inched up by a seasonally adjusted 0.1% last month, missing expectations for a 0.4% increase. Retail sales for March were revised up to a 1.5% gain from a previously reported increase of 1.2%.

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

Core retail sales, which exclude automobile sales, were flat in April, disappointing forecasts for a 0.6% increase. Core sales in March were revised up to a rise of 1% from a previously reported increase of 0.7%.

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 trimmed gains against the euro, with EUR/USD shedding 0.28% to trade at 1.3719, compared to 1.3704 ahead of the data.

Meanwhile, U.S. stock index futures pointed to a higher open. The Dow pointed to a gain of 0.15%, the S&P 500 indicated a rise of 0.15%, while the Nasdaq 100 signaled an increase of 0.1%.

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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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