US retail sales fall 0.6% in July, missing forecasts
Why it matters: The drop may ease pressure on the Fed, though economists still see stock-market gains supporting spending.
US retail sales fell 0.6% in July, the Commerce Department's Census Bureau reported Friday, reversing a 0.2% gain in June and missing economists' calls for a 0.1% increase. The decline followed a strong spring and early summer that had been bolstered by unusually large tax refunds. Analysts also pointed to Amazon shifting Prime Day into June, which pulled some purchases forward, while lower gasoline prices reduced receipts at service stations and automakers posted weaker unit sales. Core retail sales, which feed into GDP, dropped 0.4% after a downwardly revised 0.4% rise in June. Even so, economists said consumer spending could stay resilient as a 14% gain in the S&P 500 this year lifts household wealth.