Retail sales flatten as higher food, gas prices continue to squeeze spending

CNN, CNNBUSINESS

Martha C. White for CNN Business

Even with lower gas prices effectively putting more money back in their pockets, Americans tapped the brakes on spending last month.

In July, US retail sales were flat compared to the previous month, the Census Bureau reported Wednesday. That marks a slowdown from June, when retail sales rose by a revised 0.8% over the month.

Spending at gas stations fell by 1.8% month over month, reflecting the recent drop in gas prices, while spending at grocery stores rose 0.2% for the month.

“They are clearly spending money on consumables and basics at the expense of some discretionary merchandise,” Sarah Henry, portfolio manager at Logan Capital Management, said of consumers.

This is a developing story and will be updated.

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