Americans sharply pulled back on retail spending in July even as inflation remained elevated, raising fresh questions about whether the U.S. economy is weakening beneath the surface of the Iran war’s supply-driven price shock.
Retail sales fell 0.6% last month, which is the largest decrease since May 2025, compared with a revised gain of 0.2% in June, according to data the Commerce Department released on Friday.
An imploding economy is causing hopelessness among both pro- and anti-government Iranians. And for those who wished for regime change, the letdown is palpable.
Wirth said economies will begin shrinking, starting with Asia and then Europe would follow, as demand responds to rising prices. The U.S. would be shielded from the worst of it, he said, but not entirely.