Here comes the crash: Unexpected Drop in U.S. Retail Sales as Shoppers Feel the Squeeze

The data for July showed the biggest drop in more than a year, as American 
households face the economic strains brought on by persistent inflation

By Kim Bhasin
Aug. 14, 2026 | Updated 1:15 p.m. ET

American consumers pulled back on spending in July, a surprise slowdown after 
stronger sales in the first half of the year.

Retail sales last month fell 0.6 percent from June, the biggest drop in more 
than a year, according to data the Census Bureau released Friday. The unexpected 
decrease, which is not adjusted for inflation, came after a 0.2 percent rise in 
sales in June.

Gas stations, auto dealers and electronics stores were among the categories that 
saw sales declines in July. Shoppers also spent less at e-commerce shops, though 
economists attributed this to Amazon Prime Day, a major sales event for the 
online retailer, shifting to June this year.

American households have been struggling to cope with economic strains brought 
on by [Trumpstein's] persistent inflation, including higher grocery bills and 
housing costs. That has left lower-income consumers strapped for cash, with many 
trimming their shopping lists at the supermarket and delaying big-ticket 
purchases like home renovations.

https://www.nytimes.com/2026/08/14/business/retail-sales-july.html

The American economy is notorious for being the *most* dependent on consumer 
spending to remain strong. If consumer spending falls, a recession is on its 
way. Trumpstein did this.

8647