US Retail Sales Fall 0.6% as Consumers Turn Selective

US retail sales are a closely watched gauge of household demand, which underpins roughly two-thirds of economic activity. With living costs still straining budgets, consumers are not retreating across the board. Instead, households are comparing prices more aggressively, choosing private-label products and protecting spending on selected services and experiences, leaving retailers to compete for a smaller pool of discretionary dollars.

Retail sales fell 0.6% in July from June as shoppers became more selective about where to spend. Auto and online sales declined, while clothing and dining posted gains, highlighting an uneven consumer backdrop rather than a broad pullback. Upcoming retail earnings will offer a clearer view of which categories stretched households are cutting and which purchases they continue to prioritize.