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%.