U.S. consumer spending stalled in July as inflation and Delta variant surged

Growth in U.S. consumer spending slowed in July to a modest increase of 0.3%, a sign many Americans are growing more cautious as COVID-19 cases surge.

The July increase in spending was down sharply from a 1.1% rise in June, the Commerce Department reported Friday. Experts said the pullback suggests the Delta variant of the coronavirus is crimping consumer spending, the driving force in the economy. "The Delta variant is the most obvious downside risk to the economic outlook in the second half of 2021," PNC Senior Economist Bill Adams said in a research note.