Deloitte forecasts weaker consumer spending

NEW YORK The Deloitte Research Leading Index of Consumer Spending rose slightly this month, but continues to forecast a weak spending outlook, due to continued falling home prices and rising gasoline prices.

The index, comprising four components -- tax burden, initial unemployment claims, real wages and real home prices -- rose slightly to 2.86%, from a downwardly revised gain of 2.75% a month ago.

"With shoppers becoming hesitant about spending, it would be wise for retailers to be sure the customer experience is top notch," says Stacy Janiak, Deloitte's U.S. retail leader. "This means focusing on service levels and in- stock positions of the right products, so that browsers can be converted into buyers."