US retail sales fall 0.6% in July, missing forecasts
The largest monthly drop since May 2025 was led by a 2.2% decline at non-store retailers, including Amazon, signaling weaker consumer spending than expected.
Fact Check
The Census Bureau primary release (CB26-131) confirms US retail sales fell 0.6% in July 2026. Reuters confirms this was the first decline in nine months and largest in 14 months (matching 'since May 2025') and that nonstore retailers fell 2.2%, with the Amazon connection due to Prime Day timing shifting to June. First Trust independently corroborates the 0.6% headline, the 2.2% nonstore decline, and that the result missed the consensus expectation. All components of the claim are supported by authoritative sources.
Summary
US retail sales fell 0.6% in July, a sharper pullback than economists expected after forecasts for a 0.1% increase. The decline was the largest monthly decrease since May 2025 and was driven most heavily by non-store retailers, including Amazon, where sales dropped 2.2%. The figures point to a consumer spending slowdown, a closely watched signal for the broader US economy because household demand is a major growth driver.
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