US Retail Sales Unexpectedly Fall 0.6% in July
US retail sales dropped 0.6% month-over-month in July, well below forecasts for a small gain and signaling weaker consumer spending.
The July retail sales report came in much softer than expected. Headline sales fell 0.6% from the previous month, compared with consensus forecasts for a 0.1% increase and a revised 0.2% gain previously.
Core measures also missed. Sales excluding autos declined 0.3%, while the ex-autos-and-gasoline measure fell 0.2%; both had been expected to rise. The retail sales control group, which feeds into GDP calculations, dropped 0.4% after a 0.5% prior increase, versus expectations for a 0.3% gain.
The data point to cooling consumer demand and may reinforce expectations for a more accommodative Federal Reserve stance if additional indicators confirm the slowdown.
Source: First Squawk