Deloitte Index: Consumer spending up

New York City Deloitte released its Consumer Spending Index on Friday, showing the fifth consecutive monthly rise in spending.

“The continued rise in the Index points to a significant improvement in the fundamentals of household financials,” said Carl Steidtmann, chief economist with Deloitte Research, a subsidiary of Deloitte Services LP, and author of the monthly Index.

“The housing market’s negative impact on the Index has lessened in recent months with the slowing decline in home prices, and initial unemployment claims continue to fall. The greatest impact on the Index comes from real wages, which are up 4.8% from a year ago on falling prices. If these economic indicators maintain their direction, real consumer spending may turn positive before the end of the year.”

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.