{"id":858014,"date":"2026-08-14T16:46:14","date_gmt":"2026-08-14T16:46:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/858014\/"},"modified":"2026-08-14T16:46:14","modified_gmt":"2026-08-14T16:46:14","slug":"u-s-retail-sales-post-biggest-drop-in-more-than-a-year-in-july","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/858014\/","title":{"rendered":"U.S. retail sales post biggest drop in more than a year in July"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

People shop at a retail store in New York in July, 2025.Spencer Platt\/Getty Images<\/p>\n

After splurging on the World Cup and Amazon Prime Day sales, Americans unexpectedly cut their spending in July by the biggest amount in more than a year.<\/p>\n

Retail sales fell 0.6 per cent last month, marking the biggest decrease since May, 2025, compared with a revised gain of 0.2 per cent in June, according to the Commerce Department data released Friday.<\/p>\n

The drop in spending raised concern among some economists about the resiliency of consumers who have powered the economy forward despite nagging inflation and soaring gasoline prices. Yet it may be too early to declare a retreat by one of the strongest and most consistent forces in the U.S. economy of late.<\/p>\n

Still, the weak sales report follows unexpectedly sluggish jobs figures<\/a> last week, and both suggest the economy could be slowing after strong consumer and business spending in the first half of the year.<\/p>\n

Consumers are grappling with persistent inflation that has pushed up prices faster than wages and they may have already exhausted generous tax refunds that helped offset rising costs.<\/p>\n

There was also a notable bump in spending in both April and May as Americans dipped into their generous government tax refunds.<\/p>\n

U.S. wholesale price inflation slows to 4.7% in July as gas, food costs fall<\/a><\/p>\n

While most economists still expect solid growth in the July-September quarter, many have lowered their forecasts in the wake of the retail sales report.<\/p>\n

Prices in July, which were not adjusted for inflation, were impacted by falling sales at gas stations. Fuel prices remained low until later in the month when evidence of a stalemate between the U.S. and Iran in the Strait of Hormuz began to grow. Business at gas stations fell 0.9 per cent last month, according to the report.<\/p>\n

Gas prices have been rising since the final week of July and ticked higher again overnight to US$4.08 per gallon, up from US$3.85 a month ago, according to motor club AAA. That\u2019s 92 US cents more per gallon than Americans were paying last year at this time.<\/p>\n

Gas prices typically begin to recede in August as the driving season comes to a close and the AAA said this week that the high cost of fuel for Americans this late in the year is unprecedented.<\/p>\n

Excluding sales at gas stations and auto dealers, retail sales in July fell 0.2 per cent.<\/p>\n

Business at motor vehicle and parts dealers saw a 1.8-per-cent drop from a 1.9-per-cent increase in June which was helped by auto makers\u2019 promotion incentives.<\/p>\n

Electronics and appliance sales declined 0.5 per cent. Online sales fell 2.2 per cent from June when they were fuelled by Amazon\u2019s four-day Prime Day event that began in late June, earlier than previous years.<\/p>\n

Rita Trichur: U.S. consumers keep getting hosed by Trump\u2019s topsy-turvy trade war<\/a><\/p>\n

The data offers only a snapshot of consumer spending and doesn\u2019t include activities like travel and hotel stays. The lone services category \u2013 restaurants \u2013 registered a 0.5-per-cent increase.<\/p>\n

\u201cAmerican consumers are showing signs of fatigue,\u201d Heather Long, chief economist at Navy Federal Credit Union, wrote Friday. \u201cJuly retail sales were disappointing on all levels.\u201d<\/p>\n

New data this week showed that inflation declined slightly<\/a> in July as gas and grocery prices slipped, though it is still rising more quickly than before the Iran war.<\/p>\n

Consumer prices increased 3.4 per cent in July from a year ago, down slightly from 3.5 per cent in June, the Labor Department said Wednesday. Inflation had fallen to 2.4 per cent before the Iran war. On a monthly basis, prices rose just 0.1 per cent from June to July.<\/p>\n

The modest decline marked the second straight decrease after sharply higher gas prices pushed inflation to 4.2 per cent in May, a three-year high.<\/p>\n

Given the volatile economic environment, economists are closely watching how families spend behind Christmas.<\/p>\n

Shopping has been steady, though Americans have dialled in on sales as they grow more careful with their money.<\/p>\n

Off-price retailers, consumer electronics and office supply retailers have had a \u201cstrong early start\u201d to the back-to-school season, said Elizabeth Lafontaine, director of research at Placer.ai.<\/p>\n

\u201cConsumers have looked to take advantage of early deals to check off their lists,\u201d Lafontaine said.<\/p>\n

Walmart WMT-Q<\/a>, Target TGT-N<\/a> and other retailers have been pushing discounts for the fall season, seeking to lure inflation-weary shoppers.<\/p>\n

Target, for example, says that 95 per cent of prices for school supplies are at or below last year\u2019s levels.<\/p>\n

Retailers begin reporting quarterly earnings next week.<\/p>\n

Stephen Yalof, CEO of the outlet mall operator Tanger, noted an increase in foot traffic this summer because of the World Cup festivities.<\/p>\n

More Americans were shopping too, Yalof said, because more people are vacationing close to home to save money.<\/p>\n

\u201cWe\u2019re rewarding with value, and we\u2019re getting customers to come in \u2026 and shop more frequently,\u201d Yalof told the Associated Press.<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: People shop at a retail store in New York in July, 2025.Spencer Platt\/Getty…\n","protected":false},"author":2,"featured_media":64550,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[901,888,902,879,877,903,45,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-858014","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/858014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=858014"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/858014\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/64550"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=858014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=858014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=858014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}