US Retail Sales Plummet 0.6% in July Amid Cautious Consumer Spending

Americans are becoming more cautious with their spending as July retail sales fell more than expected. The U.S. Census Bureau reported that retail sales declined 0.6% in July, compared to a predicted 0.1% increase.

The largest monthly decline came from nonstore retailers, where sales fell 2.2%. This category includes online retailers such as Amazon.com Inc. (AMZN), which was hit hardest by the decline. Motor vehicle and parts dealer sales also decreased by 1.8%.

Excluding autos, retail sales declined 0.3%, compared to expectations for a 0.2% increase. Control-group sales, which exclude food services, auto dealers, building materials stores, and gas stations, fell 0.4%. This measure is used in the calculation of consumer spending used in gross domestic product estimates.