Business, Finance & Tech
US Retail Sales Fell 0.6% in July as Consumer Confidence Declined
Americans pulled back on retail spending in July as consumer confidence also declined, raising concerns about the strength of consumer spending in the US economy.
The Commerce Department reported Friday that retail sales fell 0.6% in July from the previous month. It was the steepest monthly decline since May 2025 and followed a 0.2% increase in June.
A separate University of Michigan survey found consumer sentiment dropped about 8% early this month to a preliminary reading of 51, ending a two-month streak of gains.
Consumer spending accounts for about two-thirds of US economic growth, making the latest data significant for the broader economy.
Several retail categories recorded declines in July. Gas station sales fell 0.9%, while online sales dropped 2.2%, the largest decline among retail categories. Car dealership sales fell 2%. Restaurant and bar spending, however, increased 0.5%.
Economists said some of July's decline may have been influenced by major shopping promotions, including Amazon Prime Days, Walmart+ and Target Circle deals, which took place in June.
Retail sales were still 5% higher in July than a year earlier, although the pace of growth has slowed.
The University of Michigan survey found concerns about high prices remained widespread. Consumer sentiment declined particularly among older and lower-income consumers and people without college degrees.
The labor market could play an important role in determining whether consumer spending continues to weaken. Employers shed 23,000 jobs in July, while the labor force participation rate fell to its lowest level since 1976 outside of the pandemic. The unemployment rate remained relatively low at 4.1%.
Weaker consumer spending could also influence the Federal Reserve's decisions on interest rates as officials weigh inflation against the health of the labor market.
Explore: NBCPalmSprings.com, where we are connecting the Valley.
By: CNN Newsource
August 16, 2026
Latest Instagram Posts
Now Open! The new Agua Caliente gas station on Highway 111 in Cathedral City is officially open. A new stop for drivers in the Coachella Valley. Have you checked it out yet? #CathedralCity #AguaCaliente #CoachellaValley #NBCPalmSprin
A fire broke out Thursday morning at the KESQ News Channel 3 station in Thousand Palms, disrupting its morning broadcast. Fortunately, no injuries were reported. The fire has been extinguished, and restoration efforts are underway. Station leaders told NBC Palm Springs they planned to return to the air at noon. We’re glad everyone is safe. We’ll share updates as more information becomes available. #ThousandPalms #KESQ #CoachellaValley #NBCPalmSprings
🚨 FIRE AT KESQ WHILE ON AIR! A fire broke out inside the KESQ news station in Thousand Palms around 5 a.m. this morning, forcing the station off the air. 🔥 The fire started in an equipment room where cameras and batteries are stored. Thankfully, NO ONE WAS INJURED. The cause and extent of the damage remain unknown as the station works to get back on air. ❤️🩹 #KESQ #ThousandPalms #BreakingNews #CoachellaValley
☕️Social Time with Thalia & Jerry. Four or against daylight saving?
James Talarico is advocating for a solution to immigration enforcement that rejects "the extremism on this issue in both parties." Talarico said, "Joe Biden failed us during his administration." And now, under the Trump administration, Talarico said there is a "different kind of extremism" in enforcement.
Jeff Zeleny breaks down Texas Democrat James Talarico's performance at a CNN Town Hall, where voters questioned him on religion, abortion and more.
New findings reveal what led to the death of Jackie, the beloved bald eagle from Big Bear Valley. A necropsy confirmed highly pathogenic avian influenza (bird flu) as the primary cause of her decline. The infection caused a severe stomach ulcer, internal bleeding, anemia and a secondary bacterial infection. Testing also detected rat poison in Jackie’s liver, but officials say it was not identified as the primary cause of her death. Tests were negative for West Nile virus, and lead levels were within acceptable limits. Jackie’s mate, Shadow, remains in Big Bear Valley. Officials say there is no evidence that Shadow or the eaglets are sick. Jackie’s story captured hearts across the country and brought attention to bald eagle conservation. #JackieTheEagle #BigBear #BaldEagles #WildlifeConservation #BirdFlu #NBCPalmSprings
As discussion around flock cameras continues to spark greater conversations about surveillance and security, the Palm Springs Police Department is expected to provide an update on their flock camera program at tonight’s city council meeting. Stay tuned with NBC Palm Springs as we bring the latest details on this discussion #flockcameras #palmsprings #citycouncil #coachellavalley #760
A potent cold front will finally bring widespread fall-like temperatures to much of the central and eastern US.
Republican Rep. Mike Collins and Democratic Sen. Jon Ossoff clashed over Jeffrey Epstein during a debate in Georgia. Collins challenged Ossoff over campaign donations from LinkedIn co-founder Reid Hoffman, who has acknowledged meeting Jeffrey Epstein, while Ossoff countered accusing Collins of voting against releasing Epstein-related records, and helping to "cover up" evidence.