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United States · Business news · Economy · 16 Aug 2026

US retail sales drop 0.6% in July, the steepest fall since May 2025, with online and car sales down about 2%

US Consumer Discretionary Consumer Staples

What happened

The Commerce Department reported that retail sales fell 0.6% in July from June, after a 0.2% rise the month before and the largest monthly decline since May 2025. Online sales fell 2.2%, the biggest drop of any category, car dealership sales fell 2% and gas station sales 0.9%, while spending at restaurants and bars rose 0.5%. Sales were still 5% above July a year earlier. A University of Michigan survey early in August showed consumer sentiment down about 8% to a preliminary 51.

Why it matters for listed companies

Retail sales are the monthly read on revenue for listed store chains, e-commerce companies, carmakers and dealers, and restaurant groups. July's fall was concentrated in online and vehicle purchases, the larger and more postponable items, while eating out held up. The figures are not adjusted for prices, so part of the 5% annual gain reflects inflation, not volume. The report came alongside a month in which employers cut 23,000 jobs, which bears on household income and on lenders' card and auto-loan books.

Reported by CNN Newsource / NBC Palm Springs — “US retail sales fell 0.6% in July as consumer confidence declined” ↗ on 16 Aug 2026.

Rates and currencies since this was reported

Official series on 16 Aug 2026 or the last day before it, and the latest observation.

US Treasury 2-year yield
4.17% → 4.77% +60 bp
14 Aug 2026 → 15 Oct 2026 · US Treasury
US Treasury 10-year yield
4.68% → 5.10% +42 bp
14 Aug 2026 → 15 Oct 2026 · US Treasury
Effective fed funds rate
3.63% → 3.88% +25 bp
14 Aug 2026 → 14 Oct 2026 · Federal Reserve Bank of New York
Euro in US dollars
1.1567 → 1.1208 -0.0359
14 Aug 2026 → 15 Oct 2026 · ECB reference rate
These figures are measured, not attributed. Prices and rates move for many reasons at once; they show what happened after this story, not that the story caused it. Nothing here is a recommendation to buy, sell or hold.

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