US retail sales fell 0.6% in July, missing forecasts as consumers pull back

US retail sales unexpectedly fell 0.6% in July, marking the first decline in nine months and the largest drop since May 2025. Commerce Department data indicates that consumers pulled back as the boost from government tax refunds faded. This surprise decline, which missed forecasts, has led to a fall in the Dollar and raised concerns among economists regarding consumer resiliency and potential challenges for GDP growth amid persistent inflation and high gasoline prices.