US retail sales declined unexpectedly in July, government estimates showed Friday, marking their weakest showing in more than a year as consumers pulled back at auto dealers and online stores.

A customer shops at a store in New York, the United States, on Aug. 12, 2026. (File photo: Xinhua)

Total sales were down 0.6 percent in July from the previous month, at $763.6 billion, according to the US Department of Commerce.

Excluding sales at auto dealers and gasoline stations, sales dipped 0.2 percent on a month-on-month basis.

Analysts had expected a 0.1 percent uptick in sales for the month instead, and all eyes are on US consumer health as households grapple with inflation while drawing down on their savings.

Inflation has remained elevated in recent months, boosted by gasoline prices, after US-Israel strikes targeting Iran prompted Tehran to nearly close off the Strait of Hormuz.

The waterway is critical for global energy transit, causing costs to surge as the conflict raged on and pushing prices up at US gasoline stations.

But gasoline prices cooled in July, weighing on sales at the pump, although costs remain higher than before the Middle East war started.

Among categories, retail sales at motor vehicle and parts dealers were down 1.8 percent from the prior month, and those at electronics stores fell 0.5 percent.

Sales at gasoline stations dropped by 0.9 percent, while those at online stores tumbled 2.2 percent.

US retail sales were still up 5.0 percent from the same period a year ago.