Deloitte: Consumer Spending Hinges on Housing

Consumer spending growth is slowing and will depend chiefly on the strength of the housing market during the summer, according to Deloitte Research's Leading Index of Consumer Spending.The spending slowdown stems from declines in real wages and a tax burden that has risen slightly in the past year as economic growth pushed some households into higher income brackets, Deloitte reported. "Home sales rebounded sharply in the most recent month, but, surprisingly, we have not seen a corresponding uptick in sales of home-related goods," said Carl Steidtmann, chief economist at Deloitte Research and the author of the monthly index. "As we're seeing more lower- to middle-income households enter the housing market, there is less disposable income to furnish their new homes." The company can be found online at http://www.deloitte.com/us.