U.S. retail sales fell more than expected in July as shortages weighed on purchases of motor vehicles, suggesting a moderation in economic growth early in the third quarter, Reuters reported. The weak sales reported by the Commerce Department on Tuesday also reflected a plunge in online purchases, payback after Amazon pulled forward its Prime Day to June from July. With the school year getting into full swing later in August and most education districts reverting to in-person learning, a rebound is likely, though rising COVID-19 cases are a wild card. Retail sales dropped 1.1% last month. Data for June was revised up to show retail sales increasing 0.7% instead of rising 0.6% as previously reported. Receipts at auto dealerships fell 3.9% after declining 2.2% in June. Motor vehicle production has been hampered by a global shortage of semiconductors. The scarcity of chips has also impacted the availability of some household appliances like microwaves and fridges.
