American retail activity contracted by 0.6% during July, marking the most significant monthly downturn since May 2025. This performance fell significantly short of consensus economist projections, which had anticipated a modest 0.1% increase in consumer spending for the period.
The non-store retail sector, which encompasses major e-commerce platforms like Amazon, experienced the sharpest decline with a 2.2% reduction in sales volume. This pullback highlights a broader trend of US consumers reducing discretionary expenditures across various categories.