U.S. retail sales rise 1.1% in September

September (Photo credit: mollyjolly)

Washington, Oct. 16, swing trading .- Retail sales in the U.S. rose more-than-expected in September, increasing for the third consecutive month, official data showed on Monday. In a report, the U.S. Census Bureau said that retail sales rose by a a seasonally adjusted 1.1% in September, beating expectations for a 0.8% increase.

Retail sales in August were revised up to a 1.2% gain from a previously reported increase of 0.9%.

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

Core retail sales, which exclude automobile sales, rose by 1.1% last month. Analysts had expected core retail sales to increase 0.6% in September, after rising by an upwardly revised 1% in August.

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 held on to modest losses against the euro, with EUR/USD adding 0.12% to trade at 1.2967.

Meanwhile, U.S. stock future indices added to gains. The Dow Jones Industrial Average futures pointed to a gain of 0.45% at the open, S&P 500 futures pointed to a rise of 0.6%, while the Nasdaq 100 futures pointed to a gain of 0.7%.  

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