Americans spent less in June
American consumers spent less in June than in the previous month--the first time that's happened in nearly two years, and another sign that a double-dip recession could be in the offing.
Consumer spending dropped by 0.2 percent last month, the Commerce Department said Tuesday morning, with Americans cutting back on purchases of cars, furniture, and electronics, among other items. Because such spending accounts for around 70 percent of all economic activity, the drop may herald a coming contraction in the economy as a whole.
Growth has been extremely slow so far this year. Last week, we learned that the economy grew by just 1.3 percent in the second quarter, and 0.4 percent in the first.
Meanwhile, the government also said that incomes rose by just 0.1 percent, the smallest monthly rise since September, and a reflection of the lackluster pace of hiring.