By CountingPips.com
U.S. Retail Sales rose more than unexpected in the month of January as consumer spending on retail goods increased following a small decline in sales for December. Advance estimates of retail sales showed that sales increased by 0.5 percent to a total of $355.8 billion in January, according to the report by the U.S. Commerce Department released today. December’s retail sales data was revised higher to show a decrease of 0.1 percent after the original report showed a 0.3 percent decline.
December’s sales data was a disappointment in the heart of the holiday shopping season and followed November’s retail sales that had surged by almost 2 percent.
The January retail sales data was better than the 0.3 percent increase that the market forecasters were expecting. The increased retail sales bodes well for the domestic economic recovery as consumer spending accounts for roughly two-thirds of economic activity in the U.S.
On an annual basis, January’s retail sales level was 4.7 percent higher than the January 2009 sales level following an annual increase of 5.5 percent in December.
Core retail sales, excluding automobile sales and parts, increased by 0.6 percent in January after the revised data showed that core sales fell by 0.2 percent in December. On an annual basis, core sales increased by 4.6 percent in January from the January 2009 level following an annual gain of 5.1 percent in December.
Contributing to the higher retail sales numbers for January was a 1.5 percent increase in general merchandise stores while nonstore retailers registered an increase of 1.6 percent. Food and beverage store sales gained by 0.8 percent, electronics & appliance stores sales rose by 1.2 percent and sporting goods, hobby, book & music store sales climbed by 1.0 percent.
US Dollar rises in Forex Trading today
The U.S. dollar has been trading higher in the forex markets today against the other major currencies. The dollar has made gains today versus the euro, Swiss franc, British pound, Canadian dollar, New Zealand dollar, Australian dollar and the Japanese yen as of 1:27 pm EST in the US trading session.
The U.S. stock markets, meanwhile, have been negative so far today with the Dow Jones decreasing by over 80 points, the Nasdaq falling over 7 points and the S&P 500 down by over 8 points at time of writing. Oil has declined by $1.70 to trade at $73.58 while gold has decreased by $3.70 to trade at the $1,090.50 per ounce level.
EUR/USD 1-Hour Chart – The Euro decreasing versus the US Dollar today in forex trading and hanging around the 1.3600 level. The EUR/USD touched the 1.3531 level today for the first time since may 19th, 2009 on the continued pressure over the Greek sovereign debt situation. The euro is falling for the third straight day versus the USD and looks to be on its way to falling against the dollar for the fifth consecutive week.
