Retail spending dropped in July

(CNN)– U.S. consumers cut back on retail spending last month.

The Commerce Department says retail sales fell .6% in July from the prior month.

That number represents the steepest drop since May of 2025.

Economists were projecting a slight gain in July sales.

The figures are adjusted for seasonal swings but not inflation.

Retail spending has trended down since the Spring as the effects of tax return money fade and higher energy prices cut into people’s paychecks.