-Karen Hoguet, Macy's
US retail sales rose more than expected last month amid higher demand for furniture and automobiles, figures showed on Friday. According to the Department of Commerce, retail sales advanced 0.6% in December, following the preceding month's upwardly revised 0.2% gain and surpassing analysts expectations for an increase of 0.5%. The following increase provided further evidence that the US economy gained momentum in the last three months of 2016. In addition, retail sales grew 4.1% on annual basis and 3.3% over the past year. Sales of automobiles contributed most to this increase, jumping 2.4%.Excluding volatile items, sales climbed 0.2% last month, compared to November's upwardly revised rise of 0.3%, while analysts anticipated an increase of 0.5% during the reported period. Separately, the Department of Labor reported its Producer Price Index surged 0.3% in December, after rising 0.4% in the prior month. However, the reading topped economists' forecasts for a 1.1% increase. The PPI grew 1.3% compared to the same period one year ago and 1.6% for all of 2016. The rise was mainly driven by stronger oil prices that rose above $50 per barrel over the past months. In the meantime, the University of Michigan said its flash Consumer Confidence Index fell to 98.1 in January, following December's final reading of 98.2 and missing expectations for 98.6.
© Dukascopy Bank SA