Retail Sales See The Biggest Drop In More Than a Year. The Fading Effect Of Tax Refunds May Have Played a Role.

Retail sales declined unexpectedly in July, notching the biggest drop since May 2025. (Credit: Getty Images)

Retail sales declined unexpectedly in July, notching the biggest drop since May 2025, according to data from the Commerce Department.

However, the Census noted, the figure is up 5% from the same month last year. Total sales for the quarter were up more than 6% compared to the same period from 2025.