US retail sales fell 0.6% month-on-month in July 2026, sharply missing expectations for a 0.1% rise and reversing June’s 0.2% gain. It was the first decline since October 2025 and the biggest since May last year, driven by weaker sales at nonstore retailers (-2.2%), motor vehicle & parts dealers (-1.8%), gasoline stations (-0.9%) and electronics & appliance stores (-0.5%). The data is not adjusted for inflation. Excluding gasoline, retail sales also decreased by 0.6%. Excluding autos and gasoline, sales fell 0.2%. Meanwhile, increases were seen in sales at clothing & clothing accessories stores (1.9%), health & personal care stores (0.7%), building material & garden eq. & supplies dealers (0.3%), and furniture & home furn. stores (0.3%). Sales excluding food services, auto dealers, building materials stores and gasoline stations, which are used to calculate GDP, were down 0.4%, the most since the start of 2025.