July Retail Sales Slip 0.6% – A Shift in Consumer Momentum

The Commerce Department reported that U.S. retail sales fell 0.6 % in July, the steepest monthly drop since May 2025. The decline follows a revised 0.2 % gain in June and contrasts with a 5 % year-over-year increase. Excluding gasoline stations and auto dealers, sales were down 0.2 % for the month.

US Retail Sales Unexpectedly Slump 0.6% in July, Biggest Drop Since May 2025 — BigGo Finance

Spending surged in April and May as many households tapped tax refunds. That boost faded by midsummer, and higher energy costs began to erode disposable income. The timing of Amazon’s Prime Day promotion shifted from July to June, and other retailers ran early-summer deals, reducing the usual July sales lift. Persistent inflation has kept consumers cautious, while gasoline prices rose from $3.85 to $4.08 per gallon toward the end of the month.

UsNews and World Report

• Month-over-month change: –0.6 % overall; –0.2 % excluding gas stations and auto dealers.

PBS News Hour

• Sector performance (selected):

New York Times

• Gas stations –0.9 %

PBS News Hour

• Motor vehicle and parts dealers –1.8 %

US Retail Sales Unexpectedly Slump 0.6% in July, Biggest Drop Since May 2025 — BigGo Finance

• Non-store retailers (online) –2.2 %

UsNews and World Report

• Clothing and accessories stores +1.9 %

UsNews and World Report

• Core retail index (excluding volatile categories) –0.4 % in July after a 0.4 % rise in June.

New York Post

• Year-over-year growth: +5.0 % total retail sales; +5.8 % excluding autos and auto parts.

US Retail Sales Unexpectedly Slump 0.6% in July, Biggest Drop Since May 2025 — BigGo Finance

• Labor market: Employers shed 23,000 jobs in July; the labor-force participation rate fell to its lowest level since 1976; unemployment remained at 4.1 %.

CNN

Economists said the slowdown reflects “consumer fatigue” after a year of strong spending. Heather Long of Navy Federal Credit Union linked the pullback partly to the earlier timing of Amazon Prime Day and other retailer promotions. Ellen Zentner of Morgan Stanley noted the figures strengthen the case for the Federal Reserve to pause interest-rate hikes.

CNN

• “American consumers are showing signs of fatigue,” — Heather Long, chief economist at Navy Federal Credit Union

CNN

• “We’re rewarding with value, and we’re getting customers to come in … and shop more frequently,” — Stephen Yalof, CEO of Tanger

UsNews and World Report

Retailers will release quarterly earnings in the coming weeks, offering a clearer view of how the slowdown may affect profit margins. The Federal Reserve’s next policy meeting will consider whether the recent data justify maintaining the current interest-rate stance. Analysts will watch upcoming consumer-price reports and labor-market updates for signs of whether the July pullback is a temporary dip or the start of a longer-term deceleration.

CNN