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Drop in U.S. Retail Sales Underscores Shift to Services Spending

  • The 1.1% pullback in July was led by auto dealers, e-commerce
  • Receipts at restaurants, bars increased but at slower pace
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U.S. Retail Sales Decline by More Than Expected 1.1%
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U.S. retail sales fell in July by more than forecast, reflecting a steady shift in spending toward services and indicating consumers may be growing more price conscious as inflation picks up.

The value of overall retail purchases dropped 1.1% last month following an upwardly revised 0.7% increase in June, Commerce Department figures showed Tuesday. The median estimate in a Bloomberg survey of economists called for a 0.3% decrease. Excluding autos, sales decreased 0.4% in July.