By CountingPips.com
U.S. retail sales decreased unexpectedly in the month of May as consumer spending on retail goods pulled back and halted a string of seven consecutive monthly sales increases. Advance estimates of retail sales showed that sales decreased by 1.2 percent to a total of $362.5 billion in May following a revised increase in April, according to the report by the U.S. Commerce Department. April’s retail sales data was revised higher to show an increase of 0.6 percent
The May retail sales results were worse than the 0.2 percent increase for the month that the market forecasters were expecting.
On an annual basis and despite the monthly decrease, the May sales level was 6.9 percent higher than the May 2009 sales level following an annual gain of 9.0 percent in April.
Core retail sales, excluding automobile sales and parts, decreased by 1.1 percent in May after core sales rose by 0.6 percent in April. On an annual basis, core sales increased by 6.1 percent in May from May 2009 following an annual gain of 7.8 percent in April.
Contributing to the decreased retail sales numbers for May was a notable 9.3 percent decline in building material, gardens and supplies dealers. Also showing decreases for the month were gasoline station sales with a decline of 3.3 percent, automobiles sales with a 1.7 percent shortfall, clothing & clothing accessories stores with a 1.3 percent decline and general merchandise stores which saw a decrease of 1.1 percent for the month. Positively contributing to retail sales last month were nonstore retailers, food & beverage stores, sporting goods, hobby, book & music stores and furniture & home furnishings stores.
UMichigan/Thomson Reuters Sentiment Survey rises in June.
The preliminary consumer sentiment survey produced by the University of Michigan and Thomson Reuters showed that the consumer’s outlook on the economy has improved and rose to its best level since January 2008. The consumer survey rose to a 75.5 score in June from a 73.6 score in May to surpass economic forecasts expecting the score to decrease to approximately 74.8.
The expectations index, which measures future economic sentiment, increased from 68.8 in May to 70.7 in June while the current conditions index increased from 81 in May to 82.9 in June.
US Dollar trades mixed in Forex Markets
The U.S. dollar has been mostly higher in forex trading today against the other major currencies after the U.S. economic news releases. The dollar has made gains today versus the euro, British pound, Swiss franc, Canadian dollar and a slight gain against the Japanese yen. Meanwhile, the American currency has been falling against the New Zealand dollar and trading almost unchanged versus the Australian dollar at time of writing.
The U.S. stock markets have been negative so far today with the Dow Jones decreasing by over 40 points, the Nasdaq down by about 1 point and the S&P 500 lower by over 4 points before noon in the U.S. trading session. Oil has edged down by $1.51 to the $73.97 level while gold has been virtually unchanged at the $1,221.00 per ounce level.
USD/CAD 1H Chart – The US Dollar increasing versus the Canadian Dollar today in forex trading. The USD/CAD fell to a short-term low yesterday and oversold levels on the RSI around the 1.0285 exchange rate before breaking out higher in today’s trading action and trading at the 50-hour moving average in purple.