Americans cut back on their spending in June for the first time in nearly two years, and their incomes grew by the smallest amount in nine months, troubling signs for an economy that is barely growing. Consumer spending dropped 0.2% in June, the Commerce Department says. Some of the decline was caused by declining food and energy prices, which had spiked in recent months. When excluding spending on those items, consumer spending was flat. Incomes rose 0.1%, the weakest growth since September. Many people are responding by saving more. The personal savings rate rose to 5.4% of after-tax incomes, the highest level since August 2010.
Today’s poll question: Have you made any changes to your household spending since the start of the year?
