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U.S. retail sales rise 0.3% in May, core sales inch up 0.1%

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Investing.com -

Investing.com - Retail sales in the U.S. rose less than expected in May, 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 inched up by a seasonally adjusted 0.3% last month, missing expectations for a 0.6% increase. Retail sales for April were revised up to a 0.5% gain from a previously reported increase of 0.1%.

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 May, disappointing forecasts for a 0.2% increase. Core sales in April were revised up to a rise of 0.4% from a previously reported flat reading.

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 0.06% to trade at 1.3539, compared to 1.3524 ahead of the data.

Meanwhile, U.S. stock index futures turned mixed. The Dow pointed to a gain of 0.1%, the S&P 500 indicated a decline of 0.1%, while the Nasdaq 100 signaled a drop 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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