"Giddy" U.S. consumers boost spending in July, outpacing income
/ CBS/AP
U.S. consumer spending grew 0.6% in July, a strong gain that suggests American shoppers are driving the economy forward.
The Commerce Department also said Friday that personal incomes rose just 0.1%, the smallest gain in 10 months. With spending ahead of incomes, the savings rate fell to 7.7%, the lowest since last November.
With trade war tensions discouraging business investment and cutting into exports, consumers are increasingly important to the U.S. economy. Household spending was the principal driver of growth in the April-June quarter, when it increased by the most in five years.
Trending News
"A giddy American consumer looks to drive the U.S. expansion forward again" in the third quarter, wrote Sal Guatieri, senior economist at BMO Capital Markets, in a Friday research report. "Recreational goods jumped 2.4% and have been on fire all year, a testament to the households' thirst for discretionary items amid lofty confidence in job prospects."
An inflation measure in the report increased 0.2% in July and 1.4% from a year earlier, evidence that inflation remains mild. Excluding food and energy, core prices rose 0.2% in July and 1.6% from a year ago.
First published on August 30, 2019 / 10:18 AM
© 2019 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
Pakistan warns of "genocide" as India is accused of torture in Kashmir
PM Imran Khan says Pakistan's "armed forces are ready" to respond if India launches attack to distract from alleged torture of civilians in Kashmir
38M ago 
Ebola kills girl in Uganda as outbreak death toll nears 3,000
Death of Congolese girl flagged as likely Ebola case at border checkpoint highlights risk of outbreak's spread as deaths near 3,000
2H ago 
Australia downgrades outlook for Great Barrier Reef over warming
Government agency changes health prognosis for world's biggest reef from "poor" to "very poor" as world's oceans warm up
4H ago 
Hong Kong protest leaders arrested as police ban massive rally
Organizers cancel plans for demo as police refuse to allow it, saying they want to avoid any violence as fears mount of a military crackdown
2H ago 
Queen's Guards try to beat the heat as temperatures soar
All soldiers are prone to fainting in the heat, and it's such a problem, the British Army is funding research on how to prevent it
14H ago 
Juul being investigated for role in teen vaping
Attorneys general in Illinois and Washington, D.C. are looking into how the company's vaping device became so popular with teens
3M ago 
"Giddy" consumers boost spending in July, outpacing income
Healthy boost in consumer spending suggests that American shoppers are driving economic growth
12M ago 
Simone Biles' brother charged with triple murder
Tevin Biles-Thomas was arrested in connection with a triple homicide at a party on New Year's Eve
47M ago 
Joe Biden unapologetic after reportedly mistelling military story
Joe Biden tells the story methodically and with great passion, but reportedly gets almost every key detail wrong. Biden says the essence of the story is true.
1H ago 
Trump looks to mental institutions as solution to gun violence
Mental health experts say that won't solve the gun violence crisis
1H ago
Juul being investigated for role in teen vaping
Attorneys general in Illinois and Washington, D.C. are looking into how the company's vaping device became so popular with teens
3M ago 
Preview: James Mattis on serving an "unusual president"
In his first TV interview since leaving the Trump Administration, the former secretary of defense urges caution, saying the rabid nature of politics today "could tear this country apart"
26M ago
Joe Biden unapologetic after reportedly mistelling military story
Joe Biden tells the story methodically and with great passion, but reportedly gets almost every key detail wrong. Biden says the essence of the story is true.
1H ago
Trump looks to mental institutions as solution to gun violence
Mental health experts say that won't solve the gun violence crisis
1H ago 
WNBA player Natasha Cloud on how she's addressing gun violence
On "The Takeout" podcast this week, Cloud, who plays for the Washington Mystics, tells Major Garrett about how she organized a media blackout in June to protest gun violence in D.C.
3H ago 
Alex Trebek says his chemo is over
The "Jeopardy!" host also revealed another personal tidbit: who he would like to play him in a biopic
12H ago 
Racer and TV personality dies trying to break speed record
It's unclear what led to the crash, which is under investigation
19H ago 
"Shark Tank" star involved in boat accident that left two dead
O'Leary issued a statement saying he was a passenger on the boat that crashed into another watercraft Saturday night
Aug 29 
Chanel Beauty hires first openly transgender model
"I am the first openly trans person to work for the house of Chanel, and I am deeply humbled and proud to represent my community," Teddy Quinlivan said
Aug 28 
Matthew McConaughey now a professor at UT Austin
McConaughey is forging a new career that combines two things he's passionate about: film and Texas
Aug 28 
Ring security system's work with police raises privacy concerns
The Amazon-owned doorbell camera company says more than 400 law enforcement agencies use its "Neighborhood Watch" program, giving police potential access to customers' videos
Aug 29 
Facebook tightens rules for political ads, but loopholes remain
Company says it will confirm the identity of organizations that buy ads related to social and political issues
Aug 28 
Apple apologizes for workers who listened to Siri recordings
The tech giant said it will still listen to Siri recordings, but only if consumers give permission
Aug 28 
Klobuchar blasts Trump's handling of renewable fuels industry
The EPA granted 31 small refinery exemption waivers, meaning they don't have to comply with federally mandated levels of biofuels blended into gasoline
Aug 28 
SpaceX launches "Starhopper" test flight
The Starhopper is testing propulsion systems that will be used in SpaceX's planned heavy lift Starship spacecraft
Aug 27 
Who are the biggest U.S. methane emitters?
Trump administration's move to weaken pollution rules is a missed opportunity to tackle a solvable climate problem
2H ago
Australia downgrades outlook for Great Barrier Reef over warming
Government agency changes health prognosis for world's biggest reef from "poor" to "very poor" as world's oceans warm up
4H ago 
Is there a "gay gene"? Major new study says no
There's no such thing as a single gene that drives a person's sexual behavior, according to the largest study ever done on the subject
13H ago 
Kennedy Space Center bracing for Hurricane Dorian
NASA is hauling a massive launch gantry off the launch pad to avoid the threat of hurricane winds
12H ago 
Nature up close: Masters of long-distance flight
Arctic terns fly further than any other animal on Earth, and during the course of their lives may travel 1.5 million miles
20H ago
Juul being investigated for role in teen vaping
Attorneys general in Illinois and Washington, D.C. are looking into how the company's vaping device became so popular with teens
3M ago
Ebola kills girl in Uganda as outbreak death toll nears 3,000
Death of Congolese girl flagged as likely Ebola case at border checkpoint highlights risk of outbreak's spread as deaths near 3,000
2H ago 
High school students doubt efforts to reduce teen vaping will work
Three New Jersey high school students spoke with "CBS This Morning" about whether new measures to curb teen vaping would actually work
2H ago
Is there a "gay gene"? Major new study says no
There's no such thing as a single gene that drives a person's sexual behavior, according to the largest study ever done on the subject
13H ago 
Milwaukee urges residents to stop vaping immediately
Centers for Disease Control and Prevention said 193 people in 22 states have contracted severe respiratory illnesses after vaping
15H ago
Who are the biggest U.S. methane emitters?
Trump administration's move to weaken pollution rules is a missed opportunity to tackle a solvable climate problem
2H ago 
Peloton's CEO said it makes money — not even close
Streaming fitness company has lost $450 million over the past three years alone, its IPO filing reveals
20H ago
Juul being investigated for role in teen vaping
Attorneys general in Illinois and Washington, D.C. are looking into how the company's vaping device became so popular with teens
3M ago 
Bed Bath & Beyond hires Goldman Sachs to explore asset sales
Retailer, which has seen its growth slow and shares slide. faces pressure from investors to turn things around
16H ago
"Giddy" consumers boost spending in July, outpacing income
Healthy boost in consumer spending suggests that American shoppers are driving economic growth
12M ago
Simone Biles' brother charged with triple murder
Tevin Biles-Thomas was arrested in connection with a triple homicide at a party on New Year's Eve
47M ago 
America's deadliest mass shootings
These are the deadliest mass shootings in American history
Aug 5 40 photos 
Investigators seize enough fentanyl to kill 14 million in massive bust
Law enforcement officers in Virginia busted a massive three-state drug ring as part of what they called "Operation Cookout"
3H ago 
Authorities seize enough fentanyl to kill 14M
Investigators have busted a massive drug ring spanning three states. Law enforcement officers in Virginia seized enough fentanyl to kill 14 million people as part of what they called "Operation Cookout." Thirty-five suspects were arrested, and four others are still on the run. Chip Reid reports.
2H ago 02:16 
Suspect arrested for plotting NYC attack in the name of ISIS
Sources say he was planning a knife attack in the New York City borough of Queen and added that there's no public safety issue as a result of the arrest
2H ago 
Space
Trump launches U.S. Space Command
President Trump held a Rose Garden event to commemorate the establishment of the U.S. Space Command Thursday, as the president pushes for the creation of his sixth branch of the military, the Space Force. CBS News' Bofta Yimam reports.
12H ago 01:53
Kennedy Space Center bracing for Hurricane Dorian
NASA is hauling a massive launch gantry off the launch pad to avoid the threat of hurricane winds
12H ago 
Trump establishes U.S. Space Command
President Trump marked the establishment of the U.S. Space Command in the Rose Garden, and unveiled its flag for the first time during a ceremony Thursday afternoon.
16H ago 03:49 
Trump marks establishment of U.S. Space Command
The president's "Space Force" must receive congressional approval
12H ago
SpaceX launches "Starhopper" test flight
The Starhopper is testing propulsion systems that will be used in SpaceX's planned heavy lift Starship spacecraft
Aug 27 
Highest-paid NFL players in 2019, ranked
These are the NFL superstars who earn the most cash this season
16H ago 50 photos 
Ashley Fallis death: A family's fight for justice
Was the Colorado mother's 2012 death a suicide, as her husband maintains, or was it murder, as her parents insist?
Aug 24 15 photos 
World's most polluted cities
Air pollution can cause serious health problems for people who are exposed to it, even for just a few minutes
Aug 23 51 photos 
Pictures from the Amazon rainforest fires
A record number of fires have devastated the Amazon rainforest in Brazil and neighboring countries
Aug 22 30 photos 
Jason Corbett murder: A look at the evidence
In August 2015, former FBI agent Tom Martens and his daughter Molly Corbett admitted killing her Irish-born husband Jason Corbett, insisting they beat him in self-defense with a brick paver and a baseball bat because Jason was choking Molly and threatening to kill her
Aug 17 11 photos 
Popular
The fall movies worth watching
The highly-anticipated movie "Downton Abbey" will hit theaters next month. It's just one of the big fall movie releases that Hollywood hopes will boost box office sales after a slow summer. Other movies generating a lot of buzz are "It Chapter Two," the sequel to Stephen King's horror hit, and "Hustlers," which is based on a true story of former strip club employees who swindle Wall Street clients. Erik Davis, managing editor of Fandango, joins "CBS This Morning" to discuss the movies worth watching this fall.
updated 52M ago 03:16 
Helping kids navigate the return to school
New research focused on more than 1,300 sixth graders making the transition to middle school found that students who received social and emotional support from their teachers had better grades, attendance, and fewer disciplinary problems. Psychologist Lisa Damour joins “CBS This Morning” to discuss the study, and what it means for students going back to school.
1H ago 04:22 
Ex-Gov. Jindal talks surviving a hurricane
There will be no rest in Florida this Labor Day weekend as Hurricane Dorian approaches. Dorian could be the strongest storm to hit Florida's east coast since Hurricane Andrew in 1992. An emergency has been declared for the entire state, and for part of Georgia. Former Louisiana Governor Bobby Jindal knows first-hand what it's like to prepare for a hurricane. He was a congressman during Hurricane Katrina, which killed more than 1,800 people and caused about $161 billion in damage. Jindal joins “CBS This Morning” to discuss how to prepare for a powerful storm.
1H ago 05:16 
Kid influencers: Few rules, big money
Being a social media influencer is now considered one of the most popular career aspirations for millennials and Gen Z. But experts warn that regulations need to be put in place as younger and younger influencers share their lives on camera. This episode of CBSN Originals looks at the lives of three families whose kids are popular influencers on social media, while exploring some of the dangers implicit in the “kidfluencer” industry.
Aug 23 23:06 
Inside the labs crafting slaughter-free meat
The United Nations is urging people to eat less meat, claiming that animal agriculture is a leading cause of greenhouse gases and that eating fewer animals could free up millions of acres of land. Some high-tech laboratories in Tel Aviv are pioneering a new way to make that happen: slaughter-free meat. So-called “clean meat” is created out of cells from farm animal tissues. It's real steak and real chicken, but no animals are involved. Seth Doane reports.
1H ago 03:38
