The US economy may be showing slight signs of improvement in certain areas, but US consumers are not rushing to spend their money. According to the National Retail Federation (NRF), despite the fact that the back-to-school season is in full throttle, retail industry sales for July decreased by 5% unadjusted year-over-year and also declined 0.6% seasonally adjusted month-to-month.

The U.S. Commerce Department announced that July retail sales declined by 0.1% seasonally adjusted from the previous month and dropped by 7.9% unadjusted year-over-year.

Rosalind Wells, Chief Economist of NRF, noted: “Many families postponed the bulk of their back-to-school shopping this year, possibly waiting to take advantage of their state sales tax holiday or hoping for additional discounts. Hopefully, retailers’ aggressive promotions and reduced inventory levels will make for a better August and shield retailers from a disappointing season.”

Health and personal care store sales continued to rise, with sales increasing 0.7% adjusted from last month and up 4.7%. Sales at clothing and clothing accessories stores also increased a slight 0.6% adjusted month-to-month but decreased 7.2% unadjusted year-over year. Electronics and appliance store sales decreased 1.4% seasonally adjusted month-to-month and decreased 14.3% unadjusted year-over-year.