US Retail Sales Fall Unexpectedly in July
U.S. retail sales fell 0.6% in July from June, the Commerce Department said Friday. Economists had projected a 0.1% gain.
- 0.6% drop was the biggest monthly decline since May 2025.
- 5.0% year-over-year retail sales growth remained positive despite the monthly drop.
- The 'control group' — which feeds directly into GDP — fell 0.4% month-over-month.
- Gas prices rose to $4.08 per gallon Friday, up from $3.85 a month earlier.
Why it matters: Consumer spending is the largest driver of U.S. economic output. A sustained pullback would weigh on growth projections.
- Tax refund spending that lifted April and May figures has largely run out.
- 23,000 jobs were shed in July; the available-worker pool hit its lowest level since 1967, outside the pandemic.
How 23 sources split on this story
Where they split: Left-leaning outlets emphasize fading tax refunds and labor-market strain; ZeroHedge highlights pulled-forward Amazon Prime Day demand and a post-World Cup hangover as primary causes.
Reuters4hLa confianza de los consumidores estadounidenses se deteriora en agosto
Bloomberg5hTreasuries Rise as Weak Retail Sales Dampen Fed Rate-Hike Expectations
Associated Press6hUS retail sales unexpectedly post largest drop in more than a year
Axios2hRetail sales slump in JulyCNCTV News3hU.S. retail sales unexpectedly post largest drop in more than a year
Fortune4h'It’s not lights out for the economy': U.S. retail sales drop 0.6% in July | FortuneIBTIBTimes4hRetail Sales See The Biggest Drop In More Than a Year. The Fading Effect Of Tax Refunds May Have Played a Role.KSAKSAT 12 San Antonio6hRetail sales unexpectedly fall in July as government tax refunds fade
MarketWatch5hRetail sales slump in July. Cheaper gas and Amazon Prime hangover are the chief culprits.
PBS NewsHour4hU.S. retail sales unexpectedly post largest drop in more than a yearLeft coverage, 5 sources: The left frames the drop as consumers feeling the squeeze from fading government support and rising energy costs, with labor-market weakness adding risk.
CNN6hUS consumers cut retail spending sharply in July
The Independent34mUS sees lowest retail sales in a year after Americans abruptly cut spending last monthDKDaily Kos1hRetail sales collapse as Trump slump continues
Los Angeles Times4hInflation still outruns wages, squeezing shoppers ahead of back-to-school season
The New York Times2hJuly Retail Sales Notch Biggest Drop in Over a YearRight coverage, 8 sources: The right frames July's miss as largely technical — a Prime Day calendar shift and World Cup effect — and notes that year-over-year growth remains solid.
ZeroHedge6hWorld Cup Hangover Triggers Retail Sales Slump In July, K-Shaped Economy Waning
Citizen Free Press5hRetail Sales report much weaker than expected.
Just the News49mUS retail sales drop unexpectedly as Americans curb spending following summer splurges
New York Post3hRetail sales unexpectedly drop for first time in 9 months — making it difficult for Fed to hike rates
Newsmax6hUS Retail Sales Unexpectedly Fall 0.6% in July
One America News10hUS retail sales unexpectedly post largest drop in more than a year
The Epoch Times18hShoppers Close Their Wallets in July as US Retail Sales Unexpectedly Fall
The Washington Times6hRetail sales unexpectedly fall in July as government tax refunds fadeWhat’s next: Economists say it is too soon to conclude the job market is deteriorating, with unemployment still historically low.
- Bank of America card data will be watched for whether lower-income spending strength continues into August.
- Was July's drop driven mainly by one-time calendar effects — Prime Day shift, World Cup — or by a durable spending slowdown?
- Will rising gas prices further compress discretionary spending in August and September?
- Does the narrowing gap between lower- and higher-income spending signal broader economic leveling or higher-income stress?