Retail sales July 2021

Buyers in the United States reduced their purchases in July even more than expected, as concerns over the delta variant of Covid-19 dampened activity and government stimulus measures dried up.

Retail sales for the month fell 1.1%, worse than the Dow Jones estimate of a 0.3% drop.

Excluding automobiles, sales fell 0.4%, according to Commerce Department figures released Tuesday.

Markets showed little initial reaction to the news, with futures contracts linked to the Dow Jones Industrial Average above 200 points and government bond yields falling overall.

Consumers make up nearly 70% of all activity in the United States, so retail sales are closely watched as an indicator of overall economic health.

Fueled by a series of government stimulus checks, buyers have helped the economy emerge from the shortest recession in history, which only lasted two months from initial fears of the coronavirus in February 2020 until in April, a month after fiscal and monetary authorities launched an unprecedented series of programs to help the nation weather the pandemic.

Although July saw a month-over-month decline, the $ 617.7 billion in sales was still a 15.8% acceleration from the same period a year ago.

Most of the monthly decline was attributable to motor vehicle and parts dealers, which fell 3.9%. The auto sector has been a major contributor to the spike in inflation in 2021, with used car prices skyrocketing amid rising demand.

Clothing stores were down 2.6%, and sporting goods, musical instrument and book stores fell 1.9%. Online sales are also down 3.1%.

With energy prices continuing to rise, gasoline sales rose 2.4% and the return of businesses to bars and restaurants pushed food and beverage sales up 1.7% . Restaurant establishments saw their sales increase by 38.4% compared to a year ago.

This is last minute news. Please check for updates.