Retail sales in July topped Wall Street estimates in the latest sign that strong US consumers are continuing to deliver positive surprises.
Retail sales rose 0.7% in July from the previous month, higher than Wall Street's estimate of 0.4% growth. Sales excluding autos and fuel rose 1.0%, well above the 0.3% estimate compiled by Bloomberg. Meanwhile, retail sales in June were updated to 0.3% from 0.2%.
The report released by the Commerce Department provides an overview of consumer spending at a time when economic data has come in stronger than expected and economists have withdrawn or eliminated expectations that the U.S. will face a recession.
This is one of several key readings on user data. On Tuesday, Home Depot again warned of slow growth in spending from its customers.
"At the same time, despite strength in the small project-related category, we see continued pressure in the large and luxury category," Home Depot CEO Ted Decker said in the company's earnings release.
Target (TGT), Walmart (WMT), The TJX Company (TJX), Ross Stores (ROST), and Deere & Co. (DE) is also expected to report this week.
The U.S. stock index futures market. extended losses on Tuesday as U.S. retail sales rose. stronger than expected fueled concerns that the Federal Reserve could keep interest rates higher for longer.
Traders' bets for a pause on a rate hike in September fell to 86.5% after the data, compared with 89% previously. .
The US dollar index traded slightly lower by 0.11% at a trading level of 102.942.
