U.S. consumer spending in June recorded its smallest gain in four months as demand for automobiles softened.
The figures suggest the economy lost some momentum at the end of the second quarter.
The Commerce Department said on Monday that U.S. consumer spending rose 0.2% after a downwardly revised 0.7% increase in May.
The tepid consumer spending suggests less vigor in the economy heading into the third quarter.
However, any slowdown is likely to be mitigated by a strengthening housing sector and tightening labor market.
The Federal Reserve last week described the economy as expanding "moderately," and upgraded its view of the labor market.
The Fed's assessment left the door open for a possible interest rate hike in September. That would be the first increase in nearly a decade.