02:26 PM EDT, 08/14/2026 (MT Newswires) -- Retail sales fell by 0.6% in July and were down 0.3% excluding a 1.8% drop in auto sales, both below expectations for small gains.

A 0.9% decline in gasoline station sales, a 2.2% drop in nonstore retail sales due to the earlier timing of Amazon Prime Days in June, 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 motor vehicles and parts, gas, building materials, and food services, fell by 0.5% after a 0.3% gain in June. Sales were down 0.4% after a 0.4% gain when the non-parts auto measure is substituted into the calculation.

The preliminary Michigan Sentiment index fell to 51.0 in August from 55.2 in July, well below expectations, with sentiment down across various demographics, but particularly among older and lower-income consumers who are more impacted by higher inflation.

According to Michigan, consumers' assessment of current conditions and the near-term outlook both declined while inflation expectations for the one-horizon increased slightly.

Business inventories held steady in June after a 0.4% increase in May. Business sales fell by 1.1% after a 2.1% gain, due largely to a 3% drop in wholesale sales.

The initial Q3 GDPnow estimate from the St. Louis Fed is for a 2.42% gain.

The Q3 GDP nowcast estimate from the Atlanta Fed is for a 4.3% gain, revised down from a 5.8% increase in the previous estimate and the New York Fed's estimate was revised down to a 2.14% gain from 2.24%.