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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