Wavering US Consumer and Job Market Show Risks to Economy

Last week’s economic data caught up with the kind of economy that company executives and consumers have long described this year: flashing some warning signs.

Employment numbers released Friday painted a much weaker picture of the labor market than previously reported. Inflation-adjusted consumer spending — which accounts for about two-thirds of US economic activity — fell in the first half of the year, while the Federal Reserve’s preferred price gauge picked up in June.

The US economy is “struggling to maintain its footing,” said Sarah House, a senior economist at Wells Fargo & Co.

“Businesses and consumers have been ...