US retail sales unexpectedly fell in July, dropping 0.6% after a 0.2% gain in June, according to the Commerce Department’s Census Bureau. Economists had forecast a 0.1% increase. The decline was attributed to the exhaustion of tax refunds and the impact of higher gasoline prices.
Retail Sales Drop
The drop in retail sales was also influenced by Amazon’s decision to move its Prime Day event to June, resulting in a decline in sales for other retailers. Additionally, gasoline prices fell in July, which weighed on receipts at service stations. Auto manufacturers reported a decline in unit sales.
Despite the decline, economists believe that the weakness in retail sales will be temporary, citing the boost in household wealth from the stock market rally. The S&P 500 index has risen 14% this year.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
