Yes - some children, once they are past the 'sounding out' stage, and are confident on a lot of words, can get OVER-confident and careless in their reading. If they are just reading for pleasure, and the sense is there, you could say it doesn't matter too much.
But it WILL matter when their reading skills are being assessed, which I guess will be for Yr2 SATs.
At Yr2 I don't think he should be following YOUR finger, but pointing for himself, if he needs to.
Has he had his sight tested? If not, maybe get it checked as a precaution. Some children put a ruler under the line of text, so they don't lose their place. Others like to use a coloured filter, to reduce the contrast of stark print. Early reading books have larger print, and child-friendly fonts, but once they are on to more advanced books, or non-fiction, print is smaller and some letters, particularly 'a' and 'g' can be in a more ornate, adult style, which confuses some children.
The main thing is to encourage him to slow down, and take more care, to observe punctuation (which should help with his writing too), use relevant expression, and mention to him his weaker areas, so he can concentrate on those. If you watch the text as he reads, don't stop him and correct every slip, but if you can manage it, make a mental (or even written) note, and at the end, show him the problem words, and hopefully he will be able to correct most of them for himself.