US retail sales rose faster than expected last month, led by demand for goods for outdoor activities as the summer weather kicked in. Retail sales rose 0.5pc in June from May, the Commerce Department said, beating the 0.4pc growth forecast. Sales at sporting goods, book, music and hobby stores climbed 3pc, rebounding from a 0.9pc drop in May. Sales of furniture and home furnishings rose 0.5pc in June, adding to a 1.2pc jump the previous month. But auto sales fell 0.7pc and sales of electronics and appliances eased 0.1pc.
Tax rebate cheques, part of George Bush's multi-billion dollar tax giveaway, are due to be sent out to households in the coming weeks, which may boost spending in the coming months and help to speed up the economic recovery. Consumer activity accounts for two thirds of the US economy. ///www.fxcentre.com