Drop in United States Retail sales underscores shift to services spending

The figures Tuesday point to a softening in third-quarter consumer spending growth.

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.

Total receipts trailed estimates by a wide margin as declines in motor vehicle and e-commerce sales weighed on the figure. Restaurant spending increased, though