Retail Sales Fell 0.6% in August as Payrolls Already Contracting

Retail and food services sales dropped 0.6% to $763.6 billion in August 2026, the Census Bureau reported August 14. The decline lands alongside July's 23,000 nonfarm payroll loss (BLS, August 7). Two pillars of the U.S. economy — consumer spending and hiring — are now flashing weakness simultaneously, raising pressure on the Federal Reserve ahead of its September policy decision.