Anne D'Innocenzio

U.S. retail sales fell 0.6% in July, the largest monthly decline since May 2025, after a revised 0.2% increase in June and well below economists’ expectations for a gain. The drop followed earlier spending boosts from tax refunds, the World Cup and Amazon Prime Day, while higher gasoline prices and persistent inflation pressured households. Weakness was concentrated in areas including gas stations, auto dealers, electronics and online sales, although restaurants, clothing, furniture and home-furnishing stores posted gains. Economists said the data raise concerns about consumer fatigue but may not yet signal a broader economic downturn, as shoppers continue seeking discounts and retailers prepare for the holiday season.