Retail Sales Suffer Biggest Drop In More Than A Year As Iran War Casts Shadow Over Economy

Americans sharply pulled back on retail spending in July even as inflation remained elevated, raising fresh questions about whether the U.S. economy is weakening beneath the surface of the Iran war’s supply-driven price shock.

The data for July showed the biggest drop in more than a year, as American households face the economic strains brought on by persistent inflation

There was a notable bump in spending in both April and May as Americans dipped into their tax refunds. That affect may have faded last month.