Deloitte Spending Index down as housing market remains weak
NEW YORK - The Deloitte Spending Index, comprising four components -- tax burden, initial unemployment claims, real wages and real home prices -- fell to 4.29%, from an upwardly revised gain of 4.71% a month ago. According to Deloitte the decline was primarily due to sustained weakness in the housing market despite incremental gains in other areas.
"Real consumer spending has accelerated in recent months, and consumers presently retain their spending potential following a period of increased savings, debt reduction and a rise in personal income in the U.S.," said Carl Steidtmann, Deloitte's chief economist and author of the monthly Index. "While this momentum may continue, it could peak in the months ahead given the continued drag on the Index from the housing market that is offsetting an uptick in real wages."