US retail sales fall more than expected in July

By Ovunc Kutlu

ANKARA (AA) - US retail sales fell more than analysts estimated in July, according to figures released Tuesday by the Commerce Department.

Retail sales came in at $617.7 billion, down 1.1% from a revised level of $624.7 billion in June.

While analysts expected a 0.3% decline on a monthly level, the figure in June was revised up to an increase of 0.7%, from 0.6%.

The annual increase in July was 15.8%, compared to July 2020.

"Clothing and clothing accessories stores were up 43.4% from July 2020, while food services and drinking places were up 38.4% from last year," the agency’s Census Bureau said in a statement.

Most of the decline in July came from motor vehicle and parts dealers that fell 3.9%. This was followed by non-store retailers with a 3.1% decrease and clothing and clothing accessories stores that declined 2.6%.

Rising inflation has become a problem for the American economy, triggering the decline in retail sales since consumers make up around 70% of all activity in the world's largest economy.

Consumer prices rose 0.5% in July on a monthly basis and soared 5.4% on an annual basis. Producer prices were up 1% and 7.8%, respectively, according to the latest figures of the Labor Department.