The U.S. Department of Commerce said Friday that retail sales dropped .6% in July from June, the largest decline since May 2025. File Photo by John Angelillo/UPI | License Photo

Aug. 14 (UPI) -- The U.S. Department of Commerce said Friday that retail sales dropped 0.6% in July from June, the largest decline since May 2025.

The department's figures, which are adjusted for seasonal swings but not for inflation, revealed retail sales were down from June's 0.2% gain and fell far short of the 0.1% gain that economists had forecasted in a FactSet poll.

However, retail sales have increased by 5% over the past year, exceeding the long-term average.

Some analysts attributed a portion of July's dip to the annual Amazon Prime sale, which normally takes place in July, but was held in June this year. Internet sales, the second-largest category of retail sales after automotive, were down 2.3% in July.