Consumer Index falls on housing crisis

NEW YORK The housing crisis continues to affect consumer spending, according to the Deloitte Leading Index of Consumer Spending, which fell sharply this month.

The index fell to 2.64% from an upwardly revised loss of 3.47% a month ago. The index consists of four components, tax burden, initial unemployment claims, real wages and real home prices.

The current housing situation is rightful concern of retailers. According to Stacy Janiak, Deloitte's U.S. retail leader, retailers should be cautious this holiday season.

"For the holidays and heading into the new year, retailers should continue to be conservative with headcount and inventory," said Janiak.