Consumer spending index rises in August

NEW YORK The Deloitte Consumer Spending Index rose to 2.94% in August from an upwardly revised gain of 2.39% a month ago, reaching its highest point since before the start of the recession.

"The year over year pace of decline in real consumer spending appears to have stabilized," said Carl Steidtmann, chief economist with Deloitte Research, a subsidiary of Deloitte Services LP, and author of the monthly Index. "Personal income tax rates are at the lowest levels of the past 50 years and unemployment claims are down from their peak, while home prices are beginning to show signs of stabilizing after plunging for the last three years. The recent strength in auto and home sales indicate that an uptick in real spending is materializing for a select few sectors. However, U.S. consumers continue to ride the wave of frugality when it comes to their more discretionary purchases."