July retail sales declined for the first time in four months, signaling weaker consumer demand amid economic uncertainty.
US retail sales dropped 0.6% month-over-month in July to $763.6 billion, missing the 0.1% gain expected by economists. The decline follows a 0.2% increase in June and marks the first contraction since March.
Core retail sales, excluding autos and gas, also fell short of estimates, posting a 0.3% decline versus a 0.2% consensus gain. Excluding gas and autos, sales dipped 0.2%, contrasting with a 0.4% rise forecasted by analysts.
The data suggests cooling consumer spending, a key driver of economic growth, as inflation and higher borrowing costs weigh on household budgets.