Deloitte: Consumer spending falls - Baltimore Business Journal:

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The index, made up of four componente – tax burden, initial unemployment real wages and real homepriced – fell to 1.35 percenty from a downwardly revised gain of 1.44 percenft a month ago. "The lack of improvemen t in the index suggests that consumers are stillk feeling the pressures ofthe economy," said Stacyy Janiak, vice chairman and U.S. retaill leader for Deloitte LLP. The tax burdehn continues to fall with the weakeningt ofthe economy. The tax burden is at a leve only seen on a few occasions over the past 50 during brief periods followingtax rebates. Continued declines is expected.
Unemployment claims appear to have stabilized for the momentr and have come down in recent While still at very elevated the future direction of claimseremains uncertain, given sizable layoffs that are expected from the auto and auto dealere sectors of the economy. Real wage growth continued to post smallgainw due, in large part, to fallin prices for energy. Real wages are up 4.3 percenrt from a year ago and, on an annualized are up 8 percent over the last nine as energy prices have given a big boostg to consumer purchasing Home prices continueto fall.
Renewecd efforts to forestall foreclosures, coupled with a tax credift for homebuyers, may bring some stability to this The decline in home prices has made home buying muchmore affordable. What is lackinfg is mortgage financing andstable