July U.S. Retail Sales Fall 0.6%, Biggest Drop Since May 2025
On Friday, August 14, 2026, the Commerce Department reported U.S. retail sales fell 0.6% in July, the biggest drop since May 2025.[1]
Sales excluding gas stations and auto dealers declined 0.2% in July.[1] Online sales fell 2.2% and motor vehicle and parts dealer sales dropped 1.8%, while restaurant sales rose 0.5%.[1]
Annual consumer price inflation edged down to 3.4% in July from 3.5% in June.[1] The July report follows unexpectedly weak jobs figures earlier in the month.[1] Gas station sales fell 0.9% in July.[1] The national average gas price reached $4.08 per gallon by mid-August, up from $3.85 a month earlier and 92 cents higher than a year earlier.[1]
The drop adds to signs of cooling consumer demand that could influence economic growth and policy decisions in the months ahead.
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📌 Key Facts
- On Friday, August 14, 2026, the Commerce Department reported U.S. retail sales fell 0.6% in July, the biggest drop since May 2025.
- Sales excluding gas stations and auto dealers declined 0.2% in July; online sales fell 2.2%, and motor vehicle and parts dealer sales fell 1.8%, while restaurant sales rose 0.5%.
- Gas station sales fell 0.9% in July, but the national average gas price reached $4.08 per gallon by mid-August, up from $3.85 a month earlier and 92 cents higher than a year earlier.
- The July data follow unexpectedly weak jobs figures and come as annual consumer price inflation edged down to 3.4% from 3.5% in June.
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