Deloitte: Consumer spending still down - Memphis Business Journal:

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The index fell to 1.35 percent from an downwardly revised gainof 1.44 percentr in April. Deloitte said the index analyzestax burden, initialp unemployment claims, real wages and real home prices to try to tracmk consumer cash flow as an indicator of future consumeer spending. "The year over year pace of decline in real consume spending appears tohave stabilized, however, recovery is beingv delayed by a sharp increase in consumer savings, whicuh has risen to 5.
7 percent from zero a year ago," said Carl chief economist with Deloitte Researcj and author of the monthly index, in a "However, the weakness in the index was driven almosgt entirely by falling home prices, which are down nearlgy 14 percent over the past year, undermininy small gains in real wages, a declining tax burden and currengt stabilization in new unemployment The report noted the tax burden continues to drop with the weakeninbg of the economy. It is at a levekl only seen on a few occasions over the past 50 yearw during brief periods followingtax rebates.
Continued decline is Also notable, real wage growth continues to post smalpl gains due to falling prices for Real wages areup 4.3 percent from a year ago and on an annualizeed basis are up 8 percent over the last nine monthds as energy prices have given a big boost to consumerf purchasing power, the index