In July 2025, retail sales in the United States, excluding gasoline and automobiles, experienced a notable slowdown, with growth decelerating to 0.2%. This represents a significant decline from June's more robust 0.6% increase, as reported in the latest data release on August 15, 2025.
The month-over-month comparison reveals a cooling in consumer spending, a critical barometer of economic health in the retail sector. Economists are closely watching these figures, as they reflect consumer behavior and potential adjustments in spending habits amid various economic pressures.
This deceleration could indicate shifting priorities or economic caution among consumers, and it underscores the complexities that retailers face in maintaining growth momentum. As analysts scrutinize the factors contributing to this slowdown, the focus remains on understanding the broader implications for the U.S. economy as it navigates post-pandemic recovery challenges.