Gas costs cramping consumer spending

The San Jose Mercury describes the situation:

For people on a fixed or low income, the squeeze may have already started. According to the Consumer Federation of America, a low-income American will spend about 11 percent -- or $1,000 -- of their average income on gas. That's up from 8 percent in 2002.

Earlier this month, Wal-Mart's stock tumbled when executives said gas prices were cutting into customers' spending. And last week, the U.S. Commerce Department reported that orders for big-ticket manufactured goods dropped a surprisingly sharp 4.9 percent in July.