US Retail Sales Fall 0.6% in July, Missing Forecasts

U.S. retail sales fell by 0.6% in July, a sharper-than-expected decline that signals a notable pullback in consumer spending and adds to concerns about the economy's momentum heading into the third quarter. The data, released by the Census Bureau on August 14, 2026, showed total seasonally adjusted sales at $763.6 billion, down from a revised $768.1 billion in June. The drop missed economists' forecasts, which had anticipated a modest gain of around 0.1% to 0.2%.

The decline was broad-based, with significant weakness in several major categories. Motor vehicle and parts dealers saw the steepest monthly drop at 1.8%, while nonstore retailers, often used as a proxy for e-commerce, fell 2.2%. Gasoline stations declined 0.9%, and electronics and appliance stores slipped 0.5%. Grocery sales were essentially flat, edging down just 0.1%.

However, the data revealed a selective consumer, with spending holding up in certain areas. Clothing and accessories stores posted the strongest monthly increase at 1.9%, followed by health and personal care stores at 0.7%. Sales at restaurants and bars also rose by 0.5%, and general merchandise stores gained 0.3%. This uneven pattern suggests...