U.S. retail sales were unchanged in July, missing expectations

Economic Indicators

Retail sales in the U.S. were flat in July with the core number registering an unexpected decline, raising concern about consumer spending being able to push economic growth at the beginning of the third quarter, official data showed on Friday.

In a report, the U.S. Commerce Department said that retail sales were flat from the prior month, compared to the forecast for a rise of 0.4%. June retail sales for increased 0.8%, whose figure was revised from an initial 0.6% gain.

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

Core retail sales, which exclude automobile sales, unexpectedly fell by a seasonally adjusted 0.3% in July, compared to forecasts for an advance of 0.2%. Core sales in June gained 0.9%, upwardly revised from an initial 0.7% gain

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.

Source by Investing.com