Deloitte Index shows rise in spending

NEW YORK The Deloitte Research Leading Index of Consumer Spending increased to 1.62% in June from a revised gain of 1.26% a month ago. The Index had been falling steadily since October 2007.

"The upturn in the Index is a result of key indicators performing relatively better than in previous months," said Dr. Ira Kalish, consumer business director for Deloitte Research, a subsidiary of Deloitte Services LLP. "The tax burden decreased, and we saw a lower decline in real wages compared to the previous month. However, house prices continue to pull the index down sharply and a weak employment situation is the key risk for consumer spending in the months ahead."

According to Stacy Janiak, the U.S. retail sector leader at Deloitte, consumers are still being conservative with their spending and focusing on buying just the basic necessities, thus helping discounters, wholesale clubs and drug stores.

"Retailers will need to continue to aggressively woo consumers and find creative ways to present their merchandise in order to get their share of consumer spending," said Janiak.