Retail sales slump unexpectedly and sharply after a summer tax-refund boost fades | Chattanooga Times Free Press

Retail sales in the U.S. fell 0.6% in July, the biggest drop in more than a year, after Americans had spent more following the World Cup and Amazon Prime Day. The Commerce Department reported the decline on Friday, contrasting with a revised 0.2% gain in June and with economist expectations for a small increase. The pullback followed tax-refund spending bumps in April and May, raising questions among some analysts about whether consumer demand is weakening after strong first-half growth amid inflation and high gasoline prices. The University of Michigan’s consumer sentiment index also turned more pessimistic. Weakness showed up outside gas stations and auto dealers too, with motor vehicle and parts sales down 1.8%.