Retail sales unexpectedly fall in July as government tax refunds fade
NEW YORK (AP) — Shoppers unexpectedly cut their spending in July as a boost from government tax refunds faded. Retail sales slipped 0.6% last month, the biggest drop since May 2025…
Retail sales unexpectedly fell in July as the boost from government tax refunds waned, according to Commerce Department data released on Friday. The decline marked the largest drop since May 2025, with revised retail sales falling 0.6% last month, down from a revised gain of 0.2% in May. The notable decline in spending was observed throughout the month, as Americans consumed their tax refunds.
However, when excluding sales at gas stations and auto dealers, retail sales in July declined by 0.2%. Gas prices increased again to $4.08 per gallon on Friday, up from $3.85 a month ago, as reported by motor club AAA. Shoppers' spending decreased in several sectors, including consumer electronics and online retailers. Despite these declines, the data revealed a positive trend in the restaurant sector, with a 0.5% increase. The report noted that the single services category – restaurants – registered a 0.5% increase.
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- Retail sales unexpectedly fall in July as government tax refunds fade winnipegfreepress.com
