US consumer spending down 0.7% in June

Personal spending dropped 0.7% in June after climbing 1% in May, the Commerce Department said. Adjusted for inflation, spending plunged 0.9%. Incomes rose a tepid 0.2%, a slowdown from May’s 0.6% gain. Wall Street economists had forecast a 0.1% drop in spending with income up 0.2%, and many have expressed confidence the soft spot for spending has already been left behind.