U.S. retail sales unexpectedly post largest drop in more than a year

The drop in spending raised concern among some economists about the resiliency of consumers who have powered the economy forward despite nagging inflation and soaring gasoline prices.

After splurging on the World Cup and Amazon Prime Day sales, Americans cut their spending in July by the biggest amount in more than a year.

Americans unexpectedly cut their spending in July by the biggest drop since May 2025, raising doubts about the resiliency of consumers who have kept spending and powering the economy despite the rising costs of daily expenses

US retail sales unexpectedly post largest drop in more than a year  AP News

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.

Total retail and food services sales came in at $763.6 billion, down from $768.1 billion in June but up 5% from a year earlier