Consumer spending unexpectedly dropped in June for the first time in almost two years as a slump in hiring caused households to retrench, Bloomberg reported today after the release of a government report.

Purchases decreased 0.2 percent, after a 0.1 percent gain the prior month, according to the report from the U.S. Commerce Department. The median estimate of 77 economists surveyed by Bloomberg News had called for a 0.1 percent increase. Incomes grew at the slowest pace since November, and the savings rate climbed.

“Consumers just aren’t willing to go out and spend,” said Guy LeBas, a financial expert with Janney Montgomery Scott LLC. “We are stuck in a self-fulfilling circle of slow growth leading to a poor labor market, which leads to no improvement in consumer spending and again to slow growth.”

Projections for spending in the Bloomberg survey ranged from an increase of 0.4 percent to a drop of 0.3 percent.

Incomes climbed 0.1 percent in June following a 0.2 percent gain in the prior month that was revised down. Economists had forecast that incomes would rise 0.2 percent, according to the Bloomberg survey.

Wages and salaries were little changed, the weakest reading since November.

Americans boosted savings, a sign of growing concern about the economy and jobs. The savings rate climbed to 5.4 percent, the highest since September, from 5 percent.