Consumer spending slows

Despite recent job growth, U.S. consumers are behaving cautiously.

Spending was down 0.3 percent in June, the weakest showing since February when cold weather throughout much of the country put a damper on spending, the Commerce Department said Tuesday.

The June drop followed a one percent increase in May, although that figure was revised down from 1.2 percent.

Sales at automobile dealerships dropped 1.1 percent in June. The core retail sales – not counting automobiles, gasoline, building materials and restaurants – were down 0.2 percent in June.

The data does indicate that people spent more during the second quarter than they did during the first quarter, when the economy shrank 0.2 percent. Second quarter growth is expected to be up 2.5 to three percent year-over-year.