Consumer Spending Index
NEW YORK , July 25, 2014 / -- The Deloitte Consumer Spending Index (Index) reversed course, showing an increase in June. The Index tracks consumer cash flow as an indicator of future consumer spending i . "Strengthening home prices in May and a drop in unemployment claims put the Index in positive territory, showing a consumer's ability and willingness to spend," said Daniel Bachman , Deloitte's senior U.S. economist. "Although wages are down slightly, there are enough indicators showing the labor market is back, which should offset the wage component's impact on household spending." The Index, which comprises four components – tax burden, initial unemployment claims, real wages and real home prices – increased to 3.78 this month from 3.67 last month. "Consumer sentiment is on the rise due to positive unemployment numbers and the so called 'wealth effect' of the stock market, and retailers should look to capitalize,