Excluding gas and autos, July retail sales fell 0.2%
U.S. retail sales fell 0.6% in July from June, the steepest monthly decline since May 2025, according to Commerce Department data released Friday. The drop reversed a revised 0.2% gain in June as the spending boost from government tax refunds faded.
The July pullback followed spending bumps in April and May, when Americans dipped into their tax refunds, the department said. Shoppers reduced purchases in several areas, including consumer electronics and online retailers.
Excluding sales at gas stations and auto dealers, retail sales fell 0.2% in July.
Gas prices ticked up, with the national average reaching $4.08 a gallon on Friday, up from $3.85 a month earlier, according to motor club AAA.
The data offers a snapshot of consumer spending but does not include activities such as travel and hotel stays. The lone services category in the report — restaurants — registered a 0.5% increase in July.
Despite the monthly retreat, retail and food services sales stood about 5% above year-earlier levels, according to FRED data available as of Friday.