US consumers are pulling back on spending: US retail sales dropped -0.6% in July, the largest monthly decrease since May 2025, missing expectations of a +0.1% increase. The biggest drop came from non-store retailers, including Amazon, $AMZN, where sales fell -2.2%, the 2nd-largest decline since July 2021. At the same time, motor vehicle and parts dealer sales fell -1.8%. As a result, retail sales excluding auto fell -0.3%, below the expected +0.2% increase. Meanwhile, control-group sales, which feed into the GDP calculation, plunged -0.4%, the largest monthly decline since January 2025. The measure excludes food services, auto dealers, building materials stores, and gas stations. Americans are becoming more cautious with their spending.