BlockBeats News, August 15th, there were clear signs of a slowdown in U.S. consumer spending. Data from the U.S. Department of Commerce showed that retail sales in July fell by 0.6% from the previous month, marking the largest monthly decline since May 2025, well below the market's earlier expectations of a slight increase.

The data revealed that retail sales excluding gasoline also dropped by 0.6%, reflecting that the weakness in consumption was not solely due to energy prices. The core retail sales index, which measures the potential consumption trend, decreased by 0.4% in July, below market expectations; online sales fell by 2.2%, sales at auto and parts dealers also declined, while food services and drinking places saw a 0.5% increase.

Since retail sales are nominal data, they do not account for inflation. In July, the U.S. Consumer Price Index (CPI) continued to rise by 0.1%, indicating that the actual volume of goods purchased may have experienced a decline of around 0.7%.

The market believes that the energy supply shock resulting from the Iran conflict is exacerbating economic pressures in the U.S. The Federal Reserve had previously stated that the Middle East conflict had led to an increase in energy prices, boosting the inflation level, while household consumption growth remained only "very modest."

Consumer confidence has also deteriorated concurrently. Data from the University of Michigan showed that the preliminary U.S. consumer sentiment for August dropped to 51, below July's 55.2, ending a two-month trend of improvement, with a more pronounced decline in confidence among the elderly, low-income groups, and those without a college education.

The employment market similarly showed signs of weakness. The U.S. shed 23,000 jobs in July, the labor force participation rate fell to 61.4%, and the unemployment rate held steady at 4.1%, primarily due to some people exiting the labor market, with wage growth slowing to 3.2%.

Analysts point out that the energy price shock may be masking a weakening of the underlying U.S. economic fundamentals: inflation is rising due to supply-side pressures, but consumers are cutting back on spending due to declining purchasing power, and businesses face the risk of weak demand. The consumption sector, which accounts for about two-thirds of economic activity, is cooling down, potentially increasing the difficulty of the Federal Reserve's future policy decisions.