Industrial metals and oil led a broad sell-off in commodities Tuesday as investors were unnerved by more signs that the economic recovery around the world may be becoming more tenuous. Metals with industrial uses were some of the hardest hit commodities after reports about China, Japan and the U.S. pointed toward weakening economic activity. Any pullback in the modest recovery would curb demand for metals like copper, platinum and palladium, which are all used in manufacturing big-ticket items like cars and homes. The day began with bad news out of China. The Conference Board made a sharp revision to an index that forecasts the country's economic activity. "China is the ringleader," said Matt Zeman, head trader at LaSalle Futures Group in Chicago. "Any negativity coming out of China is going to have a big impact on the markets." China is one of the world's largest importers of commodities, particularly copper and oil. Meanwhile, the Japanese government said export demand moderated and household spending dropped in May, while unemployment rose for the third straight month. Traders also got bad domestic economic news. Consumer confidence dropped sharply this month, according to a Conference Board survey. The group's confidence index fell nearly 10 points to 52.9. Economists polled by Thomson Reuters forecast a drop to 62.8. Investors are concerned that consumers worried about job security are likely to cut their spending in the coming months, which will reduce demand for manufactured goods. That, in turn, depresses prices for industrial metals and other raw materials. Consumers and investors are worried about the same thing: High unemployment that is keeping consumers from spending more freely. The Labor Department's monthly jobs report, due out Friday, is expected to show the unemployment rate inched higher in June. Zeman said a disappointing jobs report would exacerbate the recent sell-off in commodities.

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