CONSUMER SPENDING DIVES SHARPLY IN JUNE According to Reuters, a recent government report showed that U.S. consumer spending took a much deeper dive than expected in June amid slowing income growth as shoppers cut back on purchases of expensive items like autos. The Commerce Department said that personal spending dropped 0.7% in June (0.9% adjusted for inflation) after climbing 1% in May, while incomes rose only 0.2%, a slowdown from May's 0.6% gain. Wall Street economists had forecast a 0.1% drop in spending with incomes to rise 0.2%. Many economists have expressed confidence that the soft spot for spending has already been left behind.