July’s decline marks the first contraction in US retail sales since March, signaling weaker consumer demand amid economic uncertainty.
US retail sales fell 0.6 percent month-over-month in July to $763.6 billion, reversing June’s 0.2 percent gain and falling short of the 0.1 percent increase expected by markets.
The decline follows a period of uneven consumer spending, with annual sales up 5.0 percent. The May-July 2026 period saw a 6.3 percent (±0.5 percent) year-over-year increase, while June’s 0.2 percent gain remained unrevised.
The US Dollar Index (DXY) extended losses after the data, retreating to 99.50 as traders digested signs of cooling economic activity.