Deloitte: Housing to Spur Consumer Spending

Surging home values will spur consumer spending on furniture, consumer electronics, and home improvements in the months ahead, according to Deloitte Research's Leading Index of Consumer Spending.In addition, tax refunds and rising payroll employment will provide the cash needed for downpayments on new homes, Deloitte predicted. "Many consumers postponed buying new homes until interest rates reached bottom," said Carl Steidtmann, chief economist at Deloitte Research and the author of the monthly index. "With interest rates on the rise, they have decided to get off the dime to avoid higher rates." Mr. Steidtmann said consumers are "in a strong position to continue spending" and advised retailers to "plan for strong demand, particularly in housing-related products and consumer electronics." The company can be found online at http://www.deloitte.com/us.