Retail sales in July fell more than expected, according to the Census Bureau’s latest monthly report… (Census Bureau)
- M-O-M: U.S. retail and food services sales fell 1.1% from the previous month to $617.7 billion.
- Y-O-Y: Despite a month-to-month drop, retail sales were up 5.8% when compared to the same time last year.
SWING AND A MISS: Economists expected retail sales to fall in July, but forecasts had the drop at 0.3% not the 1.1% reported.
Auto dealers saw the biggest decline in July with a 4.3% drop which should be a welcome sign for wannabe car buyers who would like to see a cooling off in the auto market.
- Other notable declines were with online retailers (-3.1%), clothing stores (-2.6%), and home improvement stores (-1.7%).
Miscellaneous store retailers had the best month with a 3.5% jump followed by gas stations (+2.4%) and restaurants & bars (+1.7%).
Dean Baker, Senior economist at the Center for Economic and Policy Research, said on Twitter “Hate to ruin a good story line, but the drop in retail sales in July was all due to declines in car sales and on-line retailers. That’s not obviously a Delta variant picture. Restaurant sales were up 1.7 percent”