Advertisement

Retail spending in U.S. fell by 1.1% in July; more than analysts expected

Retail spending in U.S. fell by 1.1% in July; more than analysts expected
A stock board is seen on the floor of the New York Stock Exchange on Wall Street in New York City on July 30. Photo by John Angelillo/UPI | License Photo

Aug. 17 (UPI) -- Consumer spending in the United States for the month of July declined much greater than most economists expected, according to government figures released Tuesday.

The Commerce Department said in its monthly spending report that retail purchases fell last month by 1.1%. Excluding automobile purchases, spending declined by 0.4%.

Advertisement

Most analysts expected a decline in July, but projected it would only dip about 0.3%.

According to the department's report, retail trade sales were down 1.5% from June and food and beverage sales were down 0.7%. Clothing and accessories fell 2.6%.

Conversely, miscellaneous retail sales were up 3.5%, food services 1.7% and gasoline stations 2.4%.

The $617 billion Americans spent for the month of July, however, was still up 16% over July 2020.

Tuesday's report also revised up retail sales for June by 0.1%.

The greater decline in spending, experts feel, is partly due to rising coronavirus cases driven by the more contagious Delta variant and disappearing government stimulus.

Only a handful of states have continued paying enhanced unemployment benefits, which will end sometime next month.

Latest Headlines

Advertisement
Advertisement

Follow Us

Advertisement