Americans unexpectedly cut their spending in July as a boost from government tax refunds faded.
Retail sales slipped 0.6% last month, the biggest drop since May 2025, from a revised gain of 0.2% in June, according to Commerce Department data released Friday.
There was a notable bump in spending in both April and May as Americans dipped into their tax refunds. That affect may have faded last month.
Excluding sales at gas stations and at auto dealers, retail sales in July fell 0.2%. Gas prices bounced back in recent weeks in what appears to be a stalemate in the Strait of Hormuz.
Gas prices ticked higher overnight to $4.08 per gallon, up from $3.85 a month ago, according to motor club AAA. It is 92 cents more per gallon than Americans were paying last year at this time.
