"The June jobs report was poised to be another blowout. Instead, it showed signs of the labor market cooling."

Inflation-adjusted spending was little changed in May and has essentially stalled since February, setting up the economy for a substantial slowdown.

Economists still expect to see a recession but are pushing back projections of the downturn's start date.

Separate data also point to a further easing in many costs faced by firms.

Today's report gives the Fed room to pause rate hikes tomorrow.

In light of the latest figures, net exports will subtract an estimated 2.5 percentage points from second-quarter GDP.

Automakers led a rebound in U.S. factory production in April, with manufacturing output rising 1% after downward revisions to the prior two months.

On a seasonally adjusted basis, both deposits and loans fell during the week of the First Republic Bank failure.