US retail sales drop 0.6% in July, largest fall since May 2025
July US retail sales fell 0.6% versus expectations for a 0.1% increase, with non-store retailers including Amazon down 2.2% and control-group sales sliding 0.4%.
US retail sales fell 0.6% in July, missing consensus expectations for a 0.1% increase and marking the largest monthly decline since May 2025.
Non-store retailers led the weakness, with sales down 2.2% — the second-largest decline since July 2021 — while motor vehicle and parts dealer sales fell 1.8%.
Retail sales excluding autos dropped 0.3%, below the expected 0.2% increase. Control-group sales, which feed into GDP calculations, plunged 0.4%, the largest monthly decline since January 2025. That measure excludes food services, auto dealers, building materials stores, and gas stations.
The data suggest US consumers are becoming more cautious with their spending.
Source: The Kobeissi Letter