Consumer spending index continues to rise

NEW YORK The Deloitte Consumer Spending Index rose in October for the fifth consecutive month, driven in large part by real wage growth.

The Index, comprising four components -- tax burden, initial unemployment claims, real wages and real home prices -- rose to 4.12%, from an upwardly revised gain of 3.56% a month ago.

"Consumers may be encouraged by improving economic conditions, but they may also need an incentive to increase their spending," said Stacy Janiak, vice chairman and Deloitte's Retail leader. "The intersection of the holiday season with these signs of recovery may provide that motivation. Retailers should consider improving the service offerings that appeal to consumers' modified and judicious spending habits. These may include layaway plans, mobile commerce capabilities, exclusive limited-time offers and customer interaction via social media. Promotions that tie charitable contributions to purchases may also appeal to customers looking to bring a more meaningful element into their holiday activities."