FX.co ★ U.S. Core Retail Sales Slip in July, Signaling Softer Consumer Momentum

U.S. retail sales excluding gasoline and autos fell 0.2% month-over-month in July 2026, reversing a 0.4% gain recorded in June, according to data updated on 14 August 2026. The indicator tracks underlying consumer spending by stripping out the more volatile gas and vehicle categories, providing a clearer view of core retail demand.

The shift from a solid 0.4% increase in June to a 0.2% decline in July suggests a cooling in consumer activity as the summer progressed. On a month-over-month comparison, July’s negative reading indicates that core retail spending has lost some momentum after the prior month’s advance.

Market participants and policymakers are likely to read the latest print as a sign that U.S. consumers—long a key driver of economic growth—may be turning more cautious. With July’s decline following June’s increase, upcoming data releases will be watched closely to see whether this pullback proves temporary or marks the start of a softer trend in core retail demand.