US consumers continue to spend, but rising inflation has shifted their priorities

In July, US retail sales were flat compared to the previous month, the Census Bureau reported Wednesday. That marks a slowdown from June, when retail sales rose by a revised 0.8% over the month.

Spending at gas stations fell by 1.8% month over month, reflecting the recent drop in gas prices, while spending at grocery stores rose 0.2% for the month.

“They are clearly spending money on consumables and basics at the expense of some discretionary merchandise,” Sarah Henry, portfolio manager at Logan Capital Management, said of consumers.

This is a developing story and will be updated.