US Retail Sales Plummet 0.6% in July Amid Soaring Inflation
The US retail sales decline in July marked a significant drop from expectations, according to data released by the U.S. Census Bureau. The 0.6% monthly decrease is the largest since May 2025, and it follows a revised 0.2% increase in June.
The nonstore retailers saw the biggest decline, with sales falling 2.2%. This category includes online retailers such as Amazon.com Inc. (NASDAQ:AMZN), which experienced a significant drop. Motor vehicle and parts dealer sales also declined by 1.8%, while excluding autos, retail sales fell 0.3% compared to expectations for a 0.2% increase.
The decline in nonstore retailer sales was the second-largest since July 2021, while control-group sales, which exclude food services, auto dealers, building materials stores, and gas stations, dropped by 0.4%. This is the largest drop since January 2025, according to The Kobeissi Letter.