Consumer spending reaches 11-month high

New York - The Deloitte Consumer Spending Index reached its highest point since November 2013, rising to 4.5 from 4 the prior month. The Index tracks consumer cash flow as an indicator of future consumer spending.



The Index comprises four components – tax burden, initial unemployment claims, real wages and real home prices. Highlights include:



Tax Burden: The tax rate has been effectively unchanged from the previous month at 11.8%.

Initial Unemployment Claims: Claims took a big dip to 280,600 from 295,000 the prior month, and down 12% from the same period the previous year.



Real Wages: Real hourly wages were up 0.2% from the previous month and 0.8% from the same period a year earlier, increasing to $8.86.



Real Median New Home Price: New home prices increased significantly, rising 16.5% from the prior month to $128,000 and are 6.5% higher than the same period in 2013.



"Better economic conditions and an anticipated increase in overall holiday sales this year should help retailers end the year strong," said Alison Paul, vice chairman, Deloitte LLP and retail and distribution sector leader. "Furthermore, with the length of this year's holiday shopping season essentially staying the same as last year, retailers may want to advance their promotional calendar, and therefore avoid any last-minute online shipping delays that they experienced last season."