US retail sales rise more than expected

US retail sales rose more than expected in June, according to data from the Commerce Department.

Sales increased 0.6% from the previous month versus expectations of a 0.1% gain. On the year, retail sales rose 2.7%.

Spending on building materials and gardening supplies was up 3.9%, marking the biggest jump since 2010.

Meanwhile, core retail sales – which exclude auto sales – were up a seasonally-adjusted 0.7%, surpassing estimates of 0.4% growth.

Dennis de Jong, managing director at UFX.com, said: “Last week’s US non-farm payroll data shocked the market by coming in much better than expected, and the trick was repeated by today’s retail sales figures.

“Fed Chair Janet Yellen will be delighted to see the retail sector remain buoyant, as it was feared by some observers that consumers might keep their wallets close to their chests amid significant global uncertainty.