US retail sales fell 0.6% in July, snapping a nine-month streak and surprising economists who had expected a modest 0.1% increase, marking the steepest drop since May 2025. The total sales figure came in at $763.6 billion, with the hardest hits in e-commerce retailers (-2.2%), motor vehicle and parts dealers (-1.8%), and gas stations (-0.9%). The University of Michigan consumer sentiment index dropped to 51.0 in August from 55.2 in July. Major firms including Goldman Sachs and BMO have already trimmed their third-quarter GDP growth estimates, with markets now pricing in roughly a 69% probability that the Federal Reserve will hold interest rates steady at its September meeting.
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