US retail sales rise more than expected in May

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

Sales increased 0.5% from the previous month versus expectations of a 0.3% gain.

Meanwhile, core retail sales – which exclude auto sales – were up a seasonally-adjusted 0.4% last month, as expected.

David Morrison, senior market strategist at SpreadCo, said: “These are the first major US economic data release since the dismal nonfarm payroll number at the beginning of the month. Of course, thanks to the payrolls and Janet Yellen’s hawkish speech a week ago, there’s no expectation of a rate hike after tomorrow’s Fed meeting, and these Retail Sales numbers do nothing to change that.

“However, the FOMC will also release its latest summary of economic projections. This could be market-moving as it includes an update on Fed members’ projections for future rate hikes. We can expect to see the dollar rally sharply if a majority of Fed members continue to insist that we’re still due a couple of rate hikes this year.”