The Commerce Department reported on Tuesday the sales at U.S. retailers dropped 1.1 percent m-o-m in July, following a revised 0.7 percent m-o-m advance in June (originally a 0.6 percent m-o-m increase).

Economists had expected total sales would fall 0.3 percent m-o-m in July.

According to the report, most of the July decline came from lower sales at motor vehicles and parts dealers (-3.9 percent m-o-m).

Excluding auto, retail sales declined 0.4 percent m-o-m in July after a revised 1.6 percent m-o-m climb in the previous month (originally a 1.3 percent m-o-m increase), being worse than economists’ forecast of a 0.1 percent m-o-m gain.

Meanwhile, closely watched core retail sales, which exclude automobiles, gasoline, building materials and food services, and are used in GDP calculations, decreased 1.0 percent m-o-m in July after a revised 1.4 percent m-o-m rise in June (originally a 1.1 percent m-o-m advance). 

In y-o-y terms, the U.S. retail sales climb 15.8 percent in July after a revised 18.7 percent jump in the previous month (originally an 18.0 percent surge).