U.S. retail sales rose slightly more than expected in September, supporting the view that the economy maintained strong growth in Q3

On Thursday, U.S. retail sales rose slightly more than expected in September, supporting the view that the economy maintained strong growth in the third quarter.

U.S. retail sales recorded a monthly rate of 0.4% in September, beating expectations of 0.3% and the previous 0.1%. Initial jobless claims in the U.S. for the week to Oct. 12 were recorded at 241,000, lower than the expected 260,000, and the previous value was revised upward to 260,000 from 258,000

After the release of retail sales and initial claims data, traders expect the Federal Reserve to cut interest rates by less during the year. The dollar index short-term higher more than 20 points. Spot gold is $5 lower in the short term.

The retail sales report showed no signs of consumer weakness, which reduced the chances of a Fed rate cut in November from 95% to 87%. Non-physical retailers (mostly e-commerce) continue to perform strongly, up 7.1% from last year. Food services and beverages also performed well, up 3.7% year over year, a good sign of consumer health. The strong sales data suggests that consumption is showing resilience in the face of rising inflation and rising interest rates.

Signs of economic recovery probably won't stop the Fed from cutting rates again next month, but it will reinforce expectations of only a 25 basis point cut.