Deloitte: Consumer spending rises in June - Charlotte Business Journal:

bentlyoupapa1810.blogspot.com
The index rose to 1.83 percen from 1.4 percent in May. Deloittw says its index analyzes tax initialunemployment claims, real wages and real home pricesz to track consumer cash flow as an indicator of futur e consumer spending. “The pace of decline in real consumerr spending appears tobe abating,” says Ira director of global economicw and consumer business with and author of the monthly “High savings rates and unemployment accompanied by a weak housing market have weighed on consumer spending for months, but trendd are starting to point in a differenty direction.
For example, the rate of decline in housing prices began todecelerate and, in real home prices finally rose from the previousz month.” The index also reportz that the tax burden continued to drop with the weakenint of the economy. In tax cuts embedded in the federal economic-stimulusx plan are taking effect. First-time unemployment claim s remain at a historicallyhigh level, the indexd says, but the job market may be bottoming out. Real wages have flattenecd over the past several months due in large part to weakness in thejob However, on a year-over-year basis, real wagesx are rising at an accelerating in part because of deflation.
The decline in real home prices also appears tobe ending, the index says. Lowerf prices and low interest rates have encouragedf a renewal inhome buying, which, over will likely lead to a stabilization of prices. recent increases in long-term interest ratew could have a negative impact on thehousingv market.