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US retail sales beat forecasts, yet industrial production drops

US retail sales beat forecasts

US retail sales improved significantly in July, beating expectations, helping quelling concerns the world’s biggest economy may be heading into recession, but industrial production data signaled a drop.

Retail sales edged up by 0.7% in July and was expected to drop by 0.3%. The previous reading was revised down to 0.9% from 1.0%.

Core retail sales rose 1% from a previously reported 0.4%, which was revised down to 0.3%. Forecasts were in favor of 0.4% increase.

Another report from the U.S. showed a 0.2 percent fall in industrial production in June, following a revised 0.2 percent soar. Analysts had called for a 0.1 percent surge.

Despite the improvement in US retail sales data, expectations remain that the Fed is on course to cut interest rates at its meeting next month on the back of deteriorating trade conditions and the ongoing trade war with China.

The US dollar index traded slightly lower at 97.78, after opening today's trading at 97.81, as of 13:30 GMT, while it hit a two-week high at 97.90 earlier in the session.

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