U.S. Retail Sales Fall 0.6% in July
U.S. retail sales fell 0.6% in July to $763.6 billion after rising 0.2% in June, the Commerce Department said. July’s figure was below economists’ expectations in a Wall Street Journal poll.
Retail sales are reported in nominal terms, reflecting total dollars spent. In July, on-and-off peace talks involving Iran contributed to lower gasoline prices.
Spending at electronics and appliance stores fell 0.5% from June, while discretionary spending at furniture and home furnishing stores rose 0.3%.
Some economists had predicted weaker July sales. Bank of America credit and debit card spending per household rose 5% year-over-year, down from 6.3% in June.
Consumer inflation cooled to 3.4% in July from 3.5% in June, the Labor Department said Wednesday. Overall consumer spending has held up despite ongoing supply shocks across the economy, more recently from higher gasoline prices tied to the Iran conflict.
