US Retail Sales Post Biggest Monthly Decline Since May 2025

US consumers sharply reduced retail spending in July, raising fresh concerns about the strength of the economy, according to CNN.

Commerce Department data showed retail sales fell 0.6% from June, marking the largest monthly decline since May 2025. The result also missed economists’ expectations for a 0.1% increase.

Online sales suffered the steepest decline, dropping 2.2%, while auto dealership sales fell 2%. Restaurant and bar spending provided a bright spot, rising 0.5%.

The report said consumer spending has weakened since spring as larger tax refunds faded and higher energy costs pressured household budgets. Employment also showed signs of strain, with employers cutting 23,000 jobs in July.

Still, unemployment remained historically low at 4.1%, offering some support to household finances.

Related Tweet:

Retail sales fell 0.6% in July from the prior month, the Commerce Department said Friday. It was the steepest drop since May 2025. https://t.co/LJihI8dAU1 pic.twitter.com/k1nkFRRYuP

— CNN (@CNN) August 14, 2026

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