CNBC reports that retail sales were expected to have fallen off in July, as consumers reacted to the delta variant of Covid and held off on online and vehicle purchases.
Economists expect retail sales fell by 0.3% in July, compared to a 0.6% gain in June. Excluding autos, sales were expected to have gained 0.2%, after a 1.3% gain in the month of June.
The data will be released just days after University of Michigan consumer sentiment fell to the lowest level since 2011 on concerns about Covid and the impact on the economy.
However, Bank of America economists expect the decline in sales could look even more ominous, with a 2.3% month-over-month decline. The economists use Bank of America credit card data in their sales analysis, and they also expect the report to show a bigger decline than normal since July has included Prime Day sales in the past. This year, Amazon’s Prime Day was early, on June 22.