By CountingPips.com
U.S. retail sales reversed two straight months of decline and increased in July by a little less than expected, according to data released today. Advance estimates of retail sales showed that sales rose by 0.4 percent to a total of $362.7 billion in July following a revised decrease of 0.3 percent in June, according to the report by the U.S. Commerce Department.
The retail sales results were just under than the 0.5 percent increase for July that the market forecasters were expecting. The July sales gain reverses two consecutive months of decline in sales that had followed a string of seven consecutive monthly sales increases through April.
On an annual basis, the July sales level was by 5.5 percent higher than the July 2009 level following an annual gain of 5.2 percent in June.
Core retail sales, excluding automobile sales and parts, rose by 0.2 percent in July after core sales declined by 0.1 percent in June. On an annual basis, core sales increased by 4.9 percent in July from July 2009 following an annual gain of 4.6 percent in June.
Contributing to the increase in retail sales numbers for July was a 1.6 percent advance in motor vehicle and parts dealer sales while gasoline station sales increased by 2.3 percent for the month. Also showing increases for the month were miscellaneous store retailers with a rise of 0.8 percent, nonstore retailers with a 0.2 percent gain and an increase by 0.2 percent in food services & drinking places.
Negatively contributing to retail sales last month were clothing and accessories stores (-0.7), general merchandise stores (-0.2), food & beverage stores (-0.3), clothing & clothing accessories stores (-0.7) and electronics & appliance stores (-0.1).
Consumer Confidence, Consumer Prices rise
In a separate data release today, consumer confidence edged higher for the month of August, according to the preliminary report by the University of Michigan/Reuters for August. Consumer confidence rose to a 69.6 score in August from a 67.8 score in July. The preliminary score surpassed market forecasters that were expecting a 69.0 reading for the month.
Consumer prices also rose in July to reverse three straight months of declines, according to the separate report by the US Department of Labor released this morning. The consumer price index rose by 0.3 percent in July following a 0.1 percent decrease in June. On an annual basis, the consumer price index rose by 1.2 percent over the July 2009 level. July’s monthly increase was just a bit higher than market forecasts that were expecting a 0.2 percent increase for the month.
Core consumer prices, excluding food and energy, rose by 0.1 percent in July and increased for the third straight month. On an annual basis, core consumer prices have risen by 0.9 percent over the July 2009 level. Contributing to the higher consumer prices for the month was a 2.6 percent gain in the energy index. This was the first increase in the energy index since January as gasoline prices helped boost this index with an increase of 4.6 percent in the month.
US Dollar mixed in Forex Markets
The U.S. dollar has been trading mixed in the forex markets against the other major currencies after today’s U.S. retail sales release. The American currency has gained ground today versus the euro, Swiss franc, Australian dollar, New Zealand dollar and the Japanese yen while losing ground to the Canadian dollar. The dollar has been virtually unchanged so far today against the British pound sterling.
The U.S. stock markets, meanwhile, have been slightly negative in the early going today with the Dow Jones decreasing by over 20 points, the Nasdaq down by approximately 10 point and the S&P 500 is lower by over three points just before noon in the U.S. trading session. Oil has edged lower by $0.38 to the $75.36 level while gold has dipped by $1.80 to stand at the $1,212.50 per ounce level.
EUR/USD Weekly Chart – The Euro declining this week versus the US dollar in Forex trading following six consecutive weeks of higher closes. The EUR/USD price is trading very close to the 50.0 percent fibonacci level around the 1.2780 exchange rate (on the decline from April 12th at the 1.3691 to June 7th low at 1.1876) and right above the rising trendline that started on June 7th low.
