US Retail Sales Decline in July-Up Over a Year-A Chance to Reflect on How we are

U.S. retail sales declined recently, and that seems to align with some other economic indicators. However, putting it into perspective, retail sales are still higher than they were a year ago, so that is not necessarily a bad thing. The direction and size of the decline, particularly when considered alongside other economic indicators, could become important, but we need to wait and see how the trend develops (Consumer sentiment appears down as well.)

As an individual indicator, the decline doesn't appear to be particularly negative. A decline is a decline, but it needs to be viewed in conjunction with other economic factors. Businesses will obviously be affected by changes in consumer spending, especially small businesses. If we want to bring our downtowns back, one way we can help is by supporting local businesses (Think about what is being said in terms of if you are being more reflective of your spending habits consider the lens of what helps your community the most. Its a personal choice.). 

If you feel inclined, go buy from your small-town businesses and give them more opportunities to grow. Be wise about where you're spending your money because your money determines what you value and what is rewarded in the market. It can help to support businesses where the money circulates locally increasing its long-tail value. While you might be spending less you can also spend it where it maximizes its outcome (The other day I bought my produce from the OB farmers market because it goes directly back to local farmers.)

U.S. Retail Sales Show Continued Year-Over-Year Growth but Decline in July

• U.S. retail and food services sales were an estimated $763.6 billion in July 2026.
• Sales decreased 0.6% from June 2026 after seasonal, holiday, and trading-day adjustments.
• Despite the monthly decline, sales increased 5.0% compared with July 2025.
• Total sales for May through July 2026 were 6.3% higher than the same period a year earlier.
• Retail sales are an important indicator of consumer spending and economic activity. The Census Bureau's advance estimates are also used by organizations such as the Bureau of Economic Analysis and Federal Reserve to assess economic trends.

U.S. Census Bureau. (2026, August 14). Advance monthly sales for retail and food services: July 2026. https://www.census.gov/retail/sales.html