US retail and food services sales totaled $763.6 billion in July, down 0.6% from June, according to the Census Bureau’s advance estimate released on August 14. Economists had expected a modest gain of 0.1% to 0.2%. On an annualized basis, July 2026 sales remained 5.0% above July 2025 levels, with the May through July period showing a 6.3% year-over-year increase. This shortfall relative to expectations suggests that household purchasing power is more constrained than anticipated, in an environment where prices remain elevated despite inflation having retreated from its 2022 peaks.
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