US shoppers reduce retail spending in July

U.S. retail sales declined by 0.6% in July, marking the steepest monthly drop since May 2025, amid decreasing consumer confidence. Consumer sentiment also fell by about 8%, reflecting widespread concern over ongoing high prices and economic pressures. Despite these signs of economic weakening, low unemployment and a resilient labor market have kept consumer spending buoyant, though some indicators suggest potential future slowdown.

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