The US Department of Commerce reported on August 14 that July retail sales fell 0.6% month-over-month, the largest decline in a year and below market expectations.

July retail sales rose 5% year-over-year but dropped 0.6% from June, marking the steepest monthly decline since May 2025. Excluding sales of automobiles, parts, and gas stations, core retail sales dipped 0.2% month-on-month.

Breaking down the monthly figures, sales of motor vehicles and parts declined 1.8%; electronics and appliance sales fell 0.5%; gasoline station sales decreased 0.9%; online sales dropped 2.2%; building materials rose 0.3%; clothing sales increased 1.9%; health and personal care sales climbed 0.7%; restaurant and bar sales edged up 0.5%; and sales of sporting goods, musical instruments, and books were flat compared to the previous month.

US media analysis attributed the sharper-than-expected decline in July retail sales primarily to lower sales of vehicles, parts, and gasoline. Additionally, the significant drop in online sales was partly due to Amazon's Prime Day promotional event in June, which had boosted June figures. Economists noted that the July retail sales data was "disappointing," indicating consumer fatigue, which is "not good news for the US economy."

The University of Michigan reported on the same day that its preliminary consumer sentiment index for August fell to 51, below market expectations.