Please ensure Javascript is enabled for purposes of website accessibility

Suspect Identified in Ambush Shooting That Killed 2 Idaho Firefighters

16 hours ago

Will Valadao Spoil Trump’s Plan for July 4th ‘Big Beautiful Bill’ Signing?

17 hours ago

Shaver Lake and Reedley 4th of July Shows Are Wednesday. Who Else Is Celebrating?

21 hours ago

Elon Musk Says Senate Bill Would Destroy Jobs and Harm US

21 hours ago

Israel Strikes Pound Gaza, Killing 60, Ahead of US Talks on Ceasefire

22 hours ago

Trump’s Administration Finds Harvard Violated Students’ Civil Rights, WSJ Reports

22 hours ago

How Did the Supreme Court Rule? Here’s a Look at the Big Cases

3 days ago
US Consumer Spending Rose a Moderate 1.9% in July
gvw_ap_news
By Associated Press
Published 5 years ago on
August 30, 2020

Share

WASHINGTON — U.S. consumers increased their spending by 1.9% last month, a dose of support for an economy struggling to emerge from the grip of a pandemic that has held back a recovery and kept roughly 27 million people jobless.

The July gain marked the third straight monthly increase in consumer spending, the primary driver of the U.S. economy, but represented a slowdown from the previous two months.

The July gain marked the third straight monthly increase in consumer spending, the primary driver of the U.S. economy, but represented a slowdown from the previous two months. Friday’s report from the Commerce Department also showed that income rose 0.4% in July after two months of declines.

The consumer spending report arrives amid a hazy economic landscape, with high unemployment, struggling businesses and deep uncertainty about when the health crisis will be solved and when people and companies will feel confident enough to spend and hire normally again. It also comes weeks after the expiration of a $600-a-week federal unemployment benefit deprived millions of a key source of income and dimmed the outlook for consumer spending.

Real-time tracking data from JPMorgan Chase shows that credit and debit card spending had softened by early this month in states with high unemployment compared with states with lower unemployment. But Chase economists said they saw little sign that the expiration of the $600 benefit has so far caused any major economic setback. Chase said its tracker of growth in spending by 30 million Chase card holders compared with a year ago had actually risen slightly since the $600 benefit expired late last month.

But economists have warned of more severe consequences if Congress fails to resolve a political impasse and reinstate federal unemployment benefits.

Home and Auto Sales Have Been Strong. Stock Prices Have Set Record Highs.

“The steep decline in federal support for unemployed workers and heightened uncertainty will depress consumer confidence and spending and weigh on the broader economic recovery,” said Lydia Boussour, senior U.S. economist at Oxford Economics.

After enacting a massive financial rescue package in March, congressional Republicans and Democrats have failed to agree on allocating more aid to the unemployed and to struggling states and localities. President Donald Trump signed an executive order offering a stripped-down version of the unemployment benefit. At least 39 states have accepted or said that they would apply for federal grants that let them increase weekly benefits by $300 or $400. But it’s unclear how soon that money will actually get to people or how long it will last.

In the meantime, the economy, after a catastrophic fall in the April-June quarter, is likely expanding again. Home and auto sales have been strong. Stock prices have set record highs.

But a persistently high level of confirmed viral cases has damaged several industries, especially those involved with travel, tourism and entertainment, and is holding back growth. On Thursday, the government said roughly 1 million people applied for unemployment benefits last week — a historically high level that has prevailed for weeks.

Friday’s Spending Report Showed That the Fed’s Preferred Inflation Gauge Was up Just 1% in July

The Conference Board, a business research group, reported this week that consumer confidence has tumbled to its lowest level since 2014. And in survey results released this week by the National Association for Business Economics, two-thirds of economists who were polled said they thought the economy remains in recession. Nearly half said they didn’t expect it to return to pre-pandemic levels until mid-2022.

Friday’s spending report showed that the Fed’s preferred inflation gauge was up just 1% in July compared with a year ago — just half the Fed’s 2% target.

On Thursday, the Federal Reserve announced a major change in how it manages interest rates by saying it plans to keep rates near zero even after inflation has exceeded its 2% target level to help support the economy. The change means that borrowing rates for households and businesses — for everything from auto loans and home mortgages to corporate expansion — will likely remain ultra-low for years to come. Behind the Fed’s thinking is a stubbornly low inflation rate that has long defied its efforts to raise it and a belief that an exceedingly low jobless rate is critically important for the economy and for individual Americans.

Friday’s spending report showed that the Fed’s preferred inflation gauge was up just 1% in July compared with a year ago — just half the Fed’s 2% target.

The 0.4% rise in personal incomes in July followed declines of 1% in June and 4.2% in May after a 12.2% surge in April. Those shifts reflected government support in the form of the unemployment aid and $1,200 stimulus checks that went to many households. This assistance was part of the $3 trillion in relief packages that Congress enacted in response to the tens of millions of jobs that vanished in the recession and the sudden loss of revenue for millions of businesses.

The portion of income made up of wages and salaries part of incomes rose 1.4% in July, lower than the May and June gains, while government support payments fell 1.7%.

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Musk Vows to Punish Lawmakers Who Back Trump’s Spending Bill

DON'T MISS

Fresno Man Sentenced to Nearly 6 Years for $4.2 Million Tech Startup Fraud

DON'T MISS

Bryan Kohberger Pleads Guilty in Murders of Four Idaho Students, ABC News Reports

DON'T MISS

Wildfire Near Lake Madera Country Estates Burns 12 Acres, Now 100% Contained

DON'T MISS

Fresno County CHP Arrest Two in Interstate 5 Drug, Gun, and Counterfeit Money Bust

DON'T MISS

California Seizes Over 600,000 Pounds of Illegal Fireworks. Newsom Calls for Safe Celebrations

DON'T MISS

Where Trade Talks Stand With Major US Partners Ahead of Tariffs-Hike Deadline

DON'T MISS

Labor Icon Huerta Breaks Ground on Fresno Park Bearing Her Name

DON'T MISS

DOJ Announces Arrest, Indictments in North Korean IT Worker Scheme

DON'T MISS

Fresno Man Arrested in Clovis for Sex-Related Crimes Against Minor

UP NEXT

Suspect Identified in Ambush Shooting That Killed 2 Idaho Firefighters

UP NEXT

US Supreme Court Lets Parents Take Kids Out of Classes With LGBT Storybooks

UP NEXT

Bill Moyers, Broadcaster and LBJ’s White House Press Secretary, Dies at 91

UP NEXT

Tesla Executive, Elon Musk Confidant Leaves EV Maker, Bloomberg News Reports

UP NEXT

How a Birthday Boat Ride on Lake Tahoe Turned Tragic

UP NEXT

Cuomo Concedes to Mamdani in New York City Democratic Mayoral Contest

UP NEXT

Mamdani Holds Lead Over Cuomo in Democratic Primary for NYC Mayor

UP NEXT

Clovis Man Sentenced to 8 Years in Federal Prison in Deadly Fentanyl Case

UP NEXT

Victims Identified as Death Toll Climbs to 8 in Lake Tahoe Boating Tragedy

UP NEXT

Florida to Build ‘Alligator Alcatraz’ Detention Center for Migrants in Everglades

Fresno Man Sentenced to Nearly 6 Years for $4.2 Million Tech Startup Fraud

14 hours ago

Bryan Kohberger Pleads Guilty in Murders of Four Idaho Students, ABC News Reports

14 hours ago

Wildfire Near Lake Madera Country Estates Burns 12 Acres, Now 100% Contained

15 hours ago

Fresno County CHP Arrest Two in Interstate 5 Drug, Gun, and Counterfeit Money Bust

15 hours ago

California Seizes Over 600,000 Pounds of Illegal Fireworks. Newsom Calls for Safe Celebrations

15 hours ago

Where Trade Talks Stand With Major US Partners Ahead of Tariffs-Hike Deadline

15 hours ago

Labor Icon Huerta Breaks Ground on Fresno Park Bearing Her Name

15 hours ago

DOJ Announces Arrest, Indictments in North Korean IT Worker Scheme

15 hours ago

Fresno Man Arrested in Clovis for Sex-Related Crimes Against Minor

16 hours ago

Dyer’s Lobbying Works. Fresno Gets $100M for Downtown From State

16 hours ago

Clovis Police Seek Public’s Help in Finding Missing 82-Year-Old Woman

The Clovis Police Department is asking for the public’s help in locating an at-risk missing adult last seen on Thursday. Pathmani Goonawarde...

13 hours ago

Clovis Police are searching for Pathmani Goonawardena, 82, who went missing nearly three weeks ago and was last seen driving a white Volvo near Copper and Auberry, possibly en route to Coarsegold. (CHP)
13 hours ago

Clovis Police Seek Public’s Help in Finding Missing 82-Year-Old Woman

fresno
13 hours ago

Fresno Woman Killed in Head-On Collision, CHP Investigating

President Donald Trump and Elon Musk attend a press conference in the Oval Office of the White House in Washington, D.C., U.S., May 30, 2025. (Reuters File)
14 hours ago

Musk Vows to Punish Lawmakers Who Back Trump’s Spending Bill

14 hours ago

Fresno Man Sentenced to Nearly 6 Years for $4.2 Million Tech Startup Fraud

Bryan Koberger, who is accused of killing four University of Idaho students, listens during a hearing to overturn his grand jury indictment in Moscow, Idaho, U.S., October 26, 2023. (Reuters File)
14 hours ago

Bryan Kohberger Pleads Guilty in Murders of Four Idaho Students, ABC News Reports

The Blanca Fire, burning 12 acres northwest of Lake Madera Country Estates in Madera County, remains active with 0% containment and no reported injuries or structural damage as the cause is under investigation as of Monday, June 30, 2025. (CalFire)
15 hours ago

Wildfire Near Lake Madera Country Estates Burns 12 Acres, Now 100% Contained

Fresno County CHP arrested two on Interstate 5 after finding about one kilogram of suspected cocaine, a loaded ghost gun, and counterfeit money during a vehicle search on Sunday, June 29, 2025. (CHP)
15 hours ago

Fresno County CHP Arrest Two in Interstate 5 Drug, Gun, and Counterfeit Money Bust

Gov. Newsom warns Californians to celebrate the Fourth of July safely, emphasizing zero tolerance for illegal fireworks which have surged to over 600,000 pounds seized this year. (Shutterstock)
15 hours ago

California Seizes Over 600,000 Pounds of Illegal Fireworks. Newsom Calls for Safe Celebrations

Help continue the work that gets you the news that matters most.

Search

Send this to a friend