US retail sales declined by 0.6% in July, compared with the expectation for a 0.1% increase in a survey compiled by Bloomberg and following the previous month's revised 0.2% increase.
Excluding a 1.8% decrease in motor vehicle sales, retail sales were still down 0.3% compared with an expected 0.2% increase. That followed a 0.2% decline in June.
Removing both motor vehicles and a 0.9% drop in gasoline station sales, retail sales were down 0.2% in July after a 0.4% increase in June.
A 0.9% decline in gasoline station sales, a 2.2% drop in nonstore retail sales, and a 0.5% drop in electronics were partially offset by a 1.9% gain in clothing sales, a 0.5% increase in food services and drinking place sales and a 0.3% increase in building material sales.
Control group retail sales, which exclude total motor vehicles, gas, building materials, and food services, fell by 0.5% after a 0.3% gain in June.
The monthly retail sales report from the US Commerce Department measures spending on retail products and food, the largest portion of economic growth. The report covers spending on goods with a services report released later each month.
Investors watch the control group that excludes food services, autos, gasoline and building materials because it feeds directly into the GDP report measuring economic growth.
If the data shows a strong US economy, that's generally bullish for stocks and bearish for bonds.