US retail sales fall 0.6% in July, most since May 2025

US retail sales fell by 0.6% in July 2026, marking the sharpest decline since May 2025 and missing forecasts of a 0.1% gain. According to Census Bureau data released on August 14, 2026, the drop was driven by reduced consumer spending at online stores and auto dealers. Economists, including Citi's Veronica Clark, analyzed the unadjusted figures amid broader trends of a weakening labor market and slowing inflation.

July retail sales decline

• ▪The US retail sales figures published by the Census Bureau on August 14, 2026, represent the value of retail purchases and are not adjusted for inflation.
• ▪Citi US Economist Veronica Clark analyzed the July 2026 retail sales data in the context of a weakening US labor market.
• ▪US retail sales decreased by 0.6% in July 2026, marking the largest decline since May 2025, according to Census Bureau data published on August 14, 2026.
• ▪The 0.6% decline in US retail sales in July 2026 missed economists' forecasts, which had projected a 0.1% gain.
• ▪Citi US Economist Veronica Clark discussed slowing inflation trends in the US economy on August 14, 2026, in response to the July retail sales report.

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