US Retail Spending Shows Largest Drop in More Than a Year

Thursday, August 27, 2026

Retail sales fell 0.6% last month, marking the biggest decrease since May 2025, compared with a revised gain of 0.2% in June, according to the Commerce Department data released Friday. Economists were projecting a small increase.

Posted by Jpw at 10:31 AM | 53 COMMENTS | permalink | Comment on This Entry |

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We analyze 125,000 US households' transactions to measure how the 2025 tariffs affected spending. Tariffs passed through 15-20% to retail prices, raising affected-good prices 1-2%. But households cut spending by 4%, three to four times the price increase. (1/3) www.federalreserve.gov/econres/feds ...

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-- FedResearch (@fedresearch.federalreserve.gov) 9:03 AM Â· Aug 27, 2026

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That Joe Biden. He can't leave us alone, can he?

#1 | Posted by Zed at 2026-08-24 07:42 AM | Reply | Newsworthy 1

Unexpectedly?

#2 | Posted by LegallyYourDead at 2026-08-24 12:58 PM | Reply | Newsworthy 2

It's almost like trumpflation is taking all disposable income.

Good job stinky.

#3 | Posted by Nixon at 2026-08-25 07:29 AM | Reply | Newsworthy 1

I'm spending more, but it's not here.

Traveling outside the country the last few years, while we are still allowed to go there.

Canada, Europe, Iceland, etc.

I try not to support anyone who supports the "dump".

#4 | Posted by bat4255 at 2026-08-27 11:47 AM | Reply

Meanwhile, this morning's data ...

US jobless claims dip in latest week; goods trade deficit widens in July
www.reuters.com

... Goods trade deficit widens to $118.8 billion in July from $101.4 billion in June

Continued claims fall 18,000 to 1.778 million in week ended August 15

Imports rise 3.7% to $318.2 billion as capital goods imports jump 11.3% ...

#5 | Posted by LampLighter at 2026-08-27 12:47 PM | Reply

Goods trade deficit widens to $118.8 billion in July from $101.4 billion in June

Wait, I thought the tariffs fixed all that.

#6 | Posted by Nixon at 2026-08-27 12:55 PM | Reply

@#6

That was my thought as well ...

#7 | Posted by LampLighter at 2026-08-27 01:33 PM | Reply

Add in that 10 year bond yields going up and we're heading for Yaba's 7th and huuuugest bankruptcy. As I posted a few days ago, he never stops screwing with something until he destroys it.

#8 | Posted by Yodagirl at 2026-08-27 06:33 PM | Reply

Wait, I thought the tariffs fixed all that.

#6 | Posted by Nixon

If by fix you mean increase by 50% in less than a year?

www.census.gov

#9 | Posted by jpw at 2026-08-28 02:48 AM | Reply

@#8 ... Add in that 10 year bond yields going up ...

Not just the 10-yr bonds, but also the 30-yr bonds.

So, Pres Trump apparently instructing Chmn Marsh to lower interest rates, but Chmn Marsh is in a corner.

The bond market is signaling trouble ahead. This is why you should pay attention
www.npr.org

... If you know one thing about bonds, know this: A sharp sell-off is shaking the bond market, and it has big implications for both the economy and your pocketbook.

To understand why the sell-off matters, it helps to understand how bond markets work " and why they are sounding alarm bells about the U.S. government's record-shattering debt levels and the path for inflation.

Here's a simple and handy guide to make sense of what's going on. ...

#10 | Posted by LampLighter at 2026-08-28 03:02 AM | Reply | Newsworthy 1

Sec Bessent's intervention with his purchases may put a temporary Band-Aid® on a symptom, but does it solve the underlying problem?

#11 | Posted by LampLighter at 2026-08-28 03:05 AM | Reply

#10 | Posted by LampLighter: Yup. Bad times are approaching.

#12 | Posted by Yodagirl at 2026-08-28 11:50 AM | Reply

While gas hovers around $5 a gallon, all my "extra" $$ becomes a fond memory at the end of my monthly SS check. I'm wearing clothes I've worn for over 10 years, knowing I don't have anywhere near the wherewithal to buy new duds. Hell...I can't even afford basic cable now. It seems every dime that comes my way, is earmarked. I used to quietly curse getting old...now there's a great possibility that my advancing age may turn out to be a blessing.

#13 | Posted by dutch46 at 2026-08-28 08:21 PM | Reply | Newsworthy 2

#10 | Posted by LampLighter: Yup. Bad times are approaching.

Because its largest drop in more than a year?

Look, I get it may be bad, but this isn't the signal. I recall under Biden we redefined what recession meant.

The signal was clear 40 years ago, the end of the gravy train was going to happen. Either you tax the crap out of anything that moves, or you get sky-high inflation.

Boomers couldn't negotiate.

Well, Boomer you took everything from the kids future; now your SS is sucking the lifeblood out of the country. In 2032 expect a hair cut in your SS income.

Several politicians had offered ideas, both D & R's, but you Boomers couldn't negotiate it. Nice work.

now there's a great possibility that my advancing age may turn out to be a blessing.

I don't wanna pick on ya, but just like a boomer to bail when it gets tough.

#14 | Posted by oneironaut at 2026-08-28 08:36 PM | Reply

This is where you consume feces and expire, slick. I'll be 86 in 2032, providing you "conservative" clowns don't starve me to death sooner. All snark aside--and I don't say this lightly--I have consistently found you THE saddest, most disingenuous hack around here. (in sotto voce) "It's your relentless agenda, stupid."

#15 | Posted by dutch46 at 2026-08-28 09:19 PM | Reply | Newsworthy 4

#15 Thank you.

#16 | Posted by A_Friend at 2026-08-28 09:20 PM | Reply

Hey...all the contact info I had for you was stranded on my old phone and computer when I had to panic move from NorCal to AZ back in 2011. Just add 09 in front of the other two numbers in my old email address. Lets catch up.

#17 | Posted by dutch46 at 2026-08-28 09:32 PM | Reply

#17 10-4, my friend.

I'll dig through my stuff...

Thanks!

#18 | Posted by A_Friend at 2026-08-28 09:55 PM | Reply

I'll be 60 in 2032.

You know, the minimum retirement age.

While I've never really counted on Social Security being there, I certainly didn't expect tens of millions of people would vote against it.

#19 | Posted by snoofy at 2026-08-28 10:20 PM | Reply | Newsworthy 1

Snoofy-with all the wit and wisdom you post, I figured you to be ancient!

#20 | Posted by Yodagirl at 2026-08-29 11:14 AM | Reply

I'm figuring that with all the regurgitating in #14's post, he had to have been gagging on something.

#21 | Posted by Yodagirl at 2026-08-29 11:15 AM | Reply

I don't wanna pick on ya, but just like a boomer to bail when it gets tough.

#14 | POSTED BY ONEIRONAUT

Sure you do. You feel the need to attack boomers all the time. You are so jealous of boomers figuring out the "system" and learning to survive it is turning you from a yellow coward to a hateful green whinny weenie.

Dying of old age isn't "bailing when the going gets tough". It's the natural order of things.

But boy I'd hate to be you when your karma catches you. And it will. Because in the end it catches us all.

Memento Mori.

#22 | Posted by donnerboy at 2026-08-29 11:33 AM | Reply

There's no Karma.

That's a Comforting Myth.

I knew a Good Man Who Never Hurt a Soul,who Recently died of Acute Liver Failure.

He was a better Person than I Am.

5 years Younger and Stronger on the Job than I Was, Assisting him.

I'm still here.

There is no Cosmic Justice, only Time and Chance....

#23 | Posted by Effeteposer at 2026-08-29 11:41 AM | Reply

"There's no Karma."

Right. Sure. Because YOU somehow just know.

Say that on your deathbed and I might even believe you.

I could also say there is no such thing as a Soul. Because you cannot prove it. Millions will disagree with you. Without proof.

One cannot tell the truth of their lives until the very end. Because your life is not just one day. It is the accumulation of the experiences of your whole life. Right up to the bitter or joyful end of it. And maybe even after.

#24 | Posted by donnerboy at 2026-08-29 11:54 AM | Reply

1Nutjob still scapegoating his way through life, eh?

He can't even take responsibility for all the abominably stupid things he says around here; he's the site's biggest 'Runaway After Being Spanked' poster we have.

#25 | Posted by Corky at 2026-08-29 12:02 PM | Reply

#24 I agree, I don't know.

I just feel lost with my friend gone.

He was stronger and faster than I ever was,he had some symptoms, frightening symptoms, but he wouldn't go to a doctor.

I begged him, he said he would get checked out, but never did, until it was far Too Late.

I guess i just feel guilty for still being here.

#26 | Posted by Effeteposer at 2026-08-29 12:25 PM | Reply

"There's no Karma."

Tell that to Alan Dershowitz and Rudy Ghouliani and The My Shillow Guy.

Trumpy's Karma has already gotten them and is busting at the seams just waiting to get at Trumpy.

I am pretty sure he won't survive it.

The bigger they are the harder they fall. One and all.

#27 | Posted by donnerboy at 2026-08-29 12:28 PM | Reply | Newsworthy 1

"I just feel lost with my friend gone."

I am sorry you lost a friend.

"There are no strangers here; only friends you haven't met yet"

#28 | Posted by donnerboy at 2026-08-29 12:34 PM | Reply

#27 | Posted by donnerboy

I was already familiar with Donald Trump's carnie act and "success" by questionable means (not paying vendors, suing, multiple bankruptcies, etc etc) before he came on the political scene.

On the night of the 2016 election, I told my wife, "He'll end up as the most reviled person in American history."

It's looking more and more like my prophesy may come true ...

#29 | Posted by AMERICANUNITY at 2026-08-29 12:37 PM | Reply

@#29 ... I was already familiar with Donald Trump's carnie act and "success" by questionable means (not paying vendors, suing, multiple bankruptcies, etc etc) before he came on the political scene. ...

Living in the NYC media area, I first learned of then citizen Trump back 35 or so years ago.

#30 | Posted by LampLighter at 2026-08-29 12:44 PM | Reply

1Nutjob still scapegoating his way through life, eh?

Boomers took advantage of easy money, now they own all the homes near work, won't let anyone build, don't help their children.

Can stay in their homes due to prop13 letting their neighbors with families pick up the tax burden.

I see you....

Boomers are the worst of the worst. Americas most selfish generation.

#31 | Posted by oneironaut at 2026-08-29 01:06 PM | Reply

Boomers are the worst of the worst. Americas most selfish generation.

And one of them is President.

#32 | Posted by REDIAL at 2026-08-29 01:10 PM | Reply

low income to price ratios for housing.
low financial cost for education.
Allow unmitigated illegal immigration.

Now the real cost of everything is coming due, and you're checking out.

Look I just hear about the struggles of people at work, I am setup just fine. But I find it ironic all you people complaining about inflation when you are receiving all the benefits of increasing the money supply.

#33 | Posted by oneironaut at 2026-08-29 01:12 PM | Reply

CSAMRUNT spends 70 hours a week simping for a serial------------ who steals from cancer charities.

#34 | Posted by reinheitsgebot at 2026-08-29 01:13 PM | Reply

And one of them is President.
#32 | POSTED BY REDIAL A

They last 5 were whats your point?

#35 | Posted by oneironaut at 2026-08-29 01:14 PM | Reply

#31

Did I mention,, 'abominably stupid'? Why, yes, I did.

Here, let's make him whine a bit about AI:

"The Rise of Corporate Influence: Many of the economic shifts that younger generations struggle with " like the rise of short-term shareholder value, deregulation, and soaring housing markets"were driven by specific corporate policies and systemic political changes, not the consensus of ordinary citizens.

Historical Context: Everyday Baby Boomers simply navigated the economic landscape of their time. Benefiting from a post-WWII economic boom or purchasing affordable housing was a standard life path, not a malicious plot against future generations.

The Class Divide Outweighs the Generational Divide

The Wealth Gap: Critics of generational warfare point out that the real division in modern society is between the hyper-wealthy elite and the working class, rather than older individuals versus younger individuals."

www.google.com

Were I such a whiner as he, I might complain about foreigners who come here to make money while planning to retire back to their Communist dictatorship, which has also been taken over by corporate interests and runs an even more corrupt security state than we have here.

#36 | Posted by Corky at 2026-08-29 01:20 PM | Reply

It's also ironic to think of Old 1Nut's grandchildren in China berating him for running away from home rather than staying and opposing what's happening in his country... you know, like Tank Guy in Tiananmen Square.

A lot on now Boomers here protested against the War and Nixon, and stopped said war and ran Tricky Dick out of Office.

Wonder what 1Nut's Gen in China has done for their country? Other than run away and hide, I mean.

#37 | Posted by Corky at 2026-08-29 01:29 PM | Reply | Newsworthy 1

Other than run away and hide, I mean.

Typically, Daddy bought them an apartment in Vancouver and a "Fast & Furious" car just to get rid of them.

#38 | Posted by REDIAL at 2026-08-29 01:33 PM | Reply | Newsworthy 1

"driven by specific corporate policies and systemic political changes, not the consensus of ordinary citizens."

These things happened in the 80s and 90s. Driven by Boomer corporate practices, the consensus of rich corporate Boomers, and Boomer politicians on both sides of the aisle.

For example:
Boomers have taken more out of Social Security than they paid in.

"Recent analyses indicate that Americans retiring this decade, which includes the majority of baby boomers, are on track to receive approximately 265% of their own direct payroll tax contributions in lifetime Social Security benefits, or 133% when employer contributions are included. This disparity arises because the program operates on a pay-as-you-go basis, where current workers' taxes fund current retirees, and the worker-to-beneficiary ratio has declined significantly from five workers per retiree in 1960 to roughly 2.9-to-1 in 2026." --AI
fortune.com

#39 | Posted by snoofy at 2026-08-29 01:40 PM | Reply

Boomers took advantage of easy money, now they own all the homes near work, won't let anyone build, don't help their children.

lol ... what a whiner. What a Joke.

Here's a free clue for you now ... spending all your youth here posting hateful nonsense isn't going to earn you much.

And like you wouldn't take advantage of "easy money" if you could.

Seriously GFY

The money I have earned and the property I have gained was not gotten with "easy money". I was not born wealthy. I come from a branch of the family that didn't get anything but the Generals Sword. So pretty much the Black Sheep.

It took a lot of study, hard work and perseverance to raise a family in this world and at the same time put up with fools like you for 40 years.

Now.. Can you show us on the doll where the evil boomers cursed you? Show us the Boomer Files!

#40 | Posted by donnerboy at 2026-08-29 01:46 PM | Reply

" Boomers have taken more out of Social Security than they paid in."

Nonsense.

SS works out to the equivalent of a 2% Bond with a 25yr average maturity.

The AI equation isn't assuming ANY investment growth over time.

It turns out, if you tell AI to prove something which is false, true ... AI will lie to you.

#41 | Posted by Danforth at 2026-08-29 01:49 PM | Reply

"SS works out to the equivalent of a 2% Bond with a 25yr average maturity."

You're talking about some kind of average.

I'm talking about a specific cohort.

#42 | Posted by snoofy at 2026-08-29 01:55 PM | Reply

"SS works out to the equivalent of a 2% Bond with a 25yr average maturity."

I don't really understand how to math that.
Let's say mom's check is $4k every month.
How much did she "buy" in bonds?

#43 | Posted by snoofy at 2026-08-29 02:03 PM | Reply

- Boomer corporate practices

lol... first I've heard that the Gilded Age Barons were Boomers; Rockefeller, Carnegie, JP Morgan... all Boomers!

#44 | Posted by Corky at 2026-08-29 02:06 PM | Reply

" You're talking about some kind of average."

Yes, everybody's.

" I'm talking about a specific cohort."

And I'm talking about EVERY cohort.

" Let's say mom's check is $4k every month.
How much did she "buy" in bonds?"

Roughly the equivalent of 8k a month in income.

Congress took that spread, between 2% and 8% returns, and spent it ... in large part for upfront tax cuts. Those folks got the 8% per annum, compounded, while SS folks get the equal of a 2% bond.

#45 | Posted by Danforth at 2026-08-29 02:08 PM | Reply

" I don't really understand how to math that."

Just ask yourself: would I rather get money upfront, to compound at 8%, or 2% bonds with a 25yr maturity?

The latter is based on a 50 year work life.

I know what I'd choose, just based on math.

#46 | Posted by Danforth at 2026-08-29 02:14 PM | Reply

It turns out, if you tell AI to prove something which is false, true ... AI will lie to you.

#41 | POSTED BY DANFORTH

Yup.

But. Ask the question in a neutral fashion and you will get all sides of the issue. Then you can use your OI to decide what is right or wrong.

AI has no emotion or dog in any fight.

#47 | Posted by donnerboy at 2026-08-29 02:16 PM | Reply

Re 47

Unless it is purposely programmed into the agent.

Of course.

#48 | Posted by donnerboy at 2026-08-29 02:25 PM | Reply

@#29 ... I was already familiar with Donald Trump's carnie act and "success" by questionable means (not paying vendors, suing, multiple bankruptcies, etc etc) before he came on the political scene. ...

Living in the NYC media area, I first learned of then citizen Trump back 35 or so years ago.

#30 | Posted by LampLighter

I was in and out of NYC quite a lot late 80's-90's. He struck me as a bulls**t self-promoter from the get go.

#49 | Posted by AMERICANUNITY at 2026-08-29 02:36 PM | Reply

PS - I was in Chicago last weekend and went on an architectural boat tour through downtown Chicago and it's seemingly endless number of old and new skyscrapers. As we passed the lone small story building that was dwarfed by a multitude of skyscrapers, the tour guide called our attention to the "Danny DeVito Building," resulting in laughter from almost everyone of the (80?) people on board.

There were audible boos as we were forced to gaze upon Trump's name emblazoned on his skyscraper in 20' letters.

#50 | Posted by AMERICANUNITY at 2026-08-29 02:48 PM | Reply

"Here's a free clue for you now ... spending all your LIFE here posting hateful nonsense isn't going to earn you much."

well said really. Sage advice for yourself and dozens of others here who, on a daily basis, do exactly what you described.

Including yourself

#51 | Posted by eberly at 2026-08-29 03:31 PM | Reply

It turns out, if you tell AI to prove something which is false, true ... AI will lie to you.
#41 | POSTED BY DANFORTH

You just learning this now? I have been telling Corky this for at least a year.

It all makes sense you didn't know what a Debt was versus a Deficit and why you conflated them.

#52 | Posted by oneironaut at 2026-08-29 03:38 PM | Reply

I recall under Biden we redefined what recession meant.

No, you recall the talking point.

There was no "redefine," there was an odd situation where the rule of thumb didn't hold because the typical indicators that usually accompanied a two quarter GDP contraction weren't present.

#53 | Posted by jpw at 2026-08-29 03:46 PM | Reply