July’s decline marks the first contraction in four months, missing forecasts and signaling softer economic activity.
US retail sales dropped 0.6% month-over-month in July to $763.6 billion, reversing June’s 0.2% gain and falling short of the 0.1% increase analysts expected. The decline suggests cooling consumer spending amid elevated interest rates and inflation pressures.
Year-over-year, retail sales rose 5.0%, but the monthly contraction contrasts with recent resilience in consumer activity. June’s modest growth had followed three consecutive monthly increases, highlighting a potential shift in spending patterns.
The data may reinforce expectations for a slower economic pace in the third quarter, though market reactions remained muted in early trading.