U.S. retail sales fell 0.6% in July.
The result missed economists' expectations for a 0.1% increase. This marks the first decline in retail spending since October 2025.
Weakness in nonstore retailers and motor vehicles drove the cooling data. Gold prices rose as the report bolstered expectations for a September Federal Reserve rate pause.
Market-implied odds of a rate hike decreased following the news. The spending drop adds to recent soft inflation data, suggesting a less aggressive central bank.