Retail sales in the US fell by 0.1 per cent in July, recording their first drop in five months as the effect of the government’s $100bn round of economic stimulus cheques to consumers began to wear off.

The data was roughly in line with economists’ expectations, driven lower primarily by a 2.4 per cent drop in sales of cars and car parts, which were down 10.5 per cent on a year-on-year basis.