U.S. retail and food-services sales fell 0.6% in July from June, the Census Bureau said Friday, while remaining 5.0% higher than a year earlier. The monthly estimate points to a softer start to the second half of the year, but the report is not adjusted for inflation and is subject to revision.
The Census Bureau estimated July retail and food-services sales at $763.6 billion, down 0.6% from the prior month with a reported margin of error of plus or minus 0.4 percentage point. The agency said total sales for May through July were 6.3% above the same three-month period in 2025.
The report offers an early view of spending at retailers, restaurants and online merchants. It is watched because consumer spending is a major part of U.S. economic activity, but the monthly retail-sales release measures receipts rather than changes in the number of goods and services purchased. That means price changes can affect the headline figure.
What the July retail-sales report shows
The July decline followed an unrevised 0.2% increase from May to June, according to the Census Bureau’s August 14 release. On a year-over-year basis, July sales were still higher, underscoring why a single monthly decrease should not be read as a complete picture of household demand.
The Census Bureau publishes detailed tables alongside its advance estimate, including data by retail category. The report is based on seasonally adjusted sales and includes retail trade and food services. It does not adjust the headline figure for price changes, so it should be considered alongside inflation and employment data when assessing consumers’ purchasing power.
Why the monthly change matters
A decline in retail sales can reflect several factors: consumers may delay large purchases, spending can shift between categories, or monthly figures can be affected by the timing of promotions and seasonal adjustment. The Census Bureau also notes that its advance estimates are revised as more complete information becomes available.
For households, the data do not describe every part of the economy. Many major services, including housing, health care and most travel spending, are not fully captured in the retail-sales measure. The report is therefore one indicator among several used to track consumer activity.
For businesses, the release can inform inventory, staffing and marketing decisions. A month of weaker headline sales may matter differently to a grocery retailer, auto dealer, apparel chain or online merchant, depending on the categories that drove the change.
What to watch next
The next retail-sales release will provide a clearer picture of whether July was a temporary pullback or the beginning of a broader change in spending. Readers should also watch updates to the July estimate, because the Census Bureau regularly revises monthly data as additional survey responses are processed.
The original release and detailed tables are available from the U.S. Census Bureau’s Advance Monthly Sales for Retail and Food Services. The agency reported that July sales were up 5.0% from July 2025, even as the month-to-month estimate declined.
This article is based on the Census Bureau’s August 14, 2026 release. Retail-sales estimates are preliminary and may be revised.
