WASHINGTON (AP) — Americans cut back their spending at stores and restaurants last month, a sign that they remain cautious despite robust job growth in the past year.
Retail sales fell 0.3 percent in June, the Commerce Department said Tuesday, the weakest showing since February’s harsh winter weather kept shoppers indoors. That followed a robust 1 percent jump in May, though that was revised down from a previous estimate of 1.2 percent.
Economists had expected that consumers would rein in their spending after May’s large gain. But the reversal was much sharper than projected.
“It certainly is a case of ‘two steps forward, one step back’ for the U.S. economy,” Dan Greenhaus, an economist at BTIG, said in a note to clients.
The figures suggest that Americans are still reluctant to spend freely, possibly restrained by memories of the Great Recession.
“Household caution still appears to be holding back a more rapid pace of spending growth,” Michael Feroli, an economist at JPMorgan Chase, said in a note to clients.
Still, consumers spent more in the April-June quarter than in the first three months of the year, the data shows.
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