WASHINGTON (AP) – Consumers put away their wallets in June, sending retail sales plunging by the sharpest amount in nearly two years. Sales of autos, furniture and building supplies all fell, highlighting the economy’s weak spots.


The 0.9 percent drop in retail sales was the biggest decline since August 2012, the Commerce Department reported Friday. It was a far bigger setback than the flat reading that had been forecast.

Part of the weakness was seen as payback for a surprise on the upside in May, when sales surged by 1.5 percent. But the June decline was also viewed as an indication that consumers are cutting back under a barrage of higher prices and a recession in the housing industry.

‘‘Consumers are increasingly cautious in the face of higher gasoline and food prices and slowing home price gains,” said Mark Zandi, chief economist at Moody’s Economy.com.

Two gauges of consumer confidence gave conflicting signals Friday. The RBC Cash Index fell to its lowest point in nearly a year while the University of Michigan/Reuters survey rebounded to a six-month high, an increase attributed to a temporary retreat in gasoline prices in late June and early July.

Capping a week that began with worries about the strength of consumer demand, Wall Street rose again on Friday as investors discounted the big drop in retail sales, choosing to believe it was a temporary stumble that will not derail prospects for continued economic expansion.