US retail sales fell 0.6% in July compared to the previous month, significantly underperforming the 0.1% increase that analysts had projected.

Excluding automobiles, retail sales declined by 0.3% month over month, while economists had anticipated a 0.2% gain. The forecasts from 63 economists ranged from a 0.5% drop to a 0.7% rise.

Total retail sales in July decreased to $763.6 billion. The "control group" measure, which excludes food services, auto dealers, building materials, and gas station sales, also fell by 0.4% month over month.