6% in July. This decrease marks the largest drop in over a year, with the last comparable decline occurring in May 2025. The decline follows a period of increased spending in April and May, which was likely fueled by tax refunds.

The drop in spending has raised concerns among economists about the resilience of consumers in the face of inflation and rising gasoline prices. Despite this, it may be too early to determine the long-term impact on the economy. Further details on the decline in retail sales and its potential effects are available from the Commerce Department, which released the data on Friday.