NEW YORK — U.S. consumer spending unexpectedly dropped in June for the first time in almost two years and savings climbed, adding to evidence that the slump in hiring is hurting households’ confidence.
Purchases declined 0.2 percent after a 0.1 percent gain the prior month, according to figures released Tuesday by the Commerce Department. The median estimate of 77 economists surveyed by Bloomberg News called for a 0.1 percent increase. Incomes grew at the slowest pace since November.
The lack of jobs combined with wage gains that have failed to keep pace with inflation raise the risk of further cuts in consumer spending, which accounts for 70 percent of the world’s largest economy.
“Consumers ended the quarter on a pretty poor note,” said John Herrmann, a senior fixed-income strategist at State Street Global Markets in Boston, who projected spending would drop. “The third quarter is looking very soft too. Consumers are facing lackluster wage growth in this phase of still-high gas prices.”
Incomes climbed 0.1 percent in June, following a 0.2 percent gain in May that was revised down. Economists had forecast incomes would rise 0.2 percent, according to the Bloomberg survey.
Americans boosted savings, a sign of growing concern over the economy and jobs. The savings rate climbed to 5.4 percent, the highest since September, from 5 percent.
