Deloitte Consumer Spending Index Slips in September

Summary


NEW YORK, Oct. 18 /PRNewswire/ -- The Deloitte Consumer Spending Index (Index) declined in September due to a climbing tax burden and continued weakness in the housing market. The Index attempts to track consumer cash flow as an indicator of future consumer spending.

"A small increase in the tax rate coupled with ongoing declines in real home prices is causing a slowdown in the Index," said Carl Steidtmann, Deloitte's chief economist and author of the monthly Index. "While the tax burden remains at historically low levels following last year's cuts associated with the stimulus package, a gradual rise in tax rates is likely to continue. However, continued modest wage growth plus a reversal of the high savings rate could help alleviate the tax pinch on household incomes."

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Deloitte Consumer Spending Index Slips in September

The Index, comprising four components -- tax burden, initial unemployment claims, real wages...

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