New York -- The Deloitte Consumer Spending Index remained flat in July as improvements in real housing prices and labor markets offset weakness in other areas. The Index, which tracks consumer cash flow as an indicator of future consumer spending, remained at 4.4 this month.
“Our recent back-to-school shopping survey showed that consumers are more positive about the U.S. economy than in past years,” said Alison Paul, vice chairman, Deloitte LLP and retail & distribution sector leader. “However, nearly 60% of shoppers said they would buy only what the family needs. About one-third said they would spend more, but mainly due to the perception of higher prices and children needing more expensive items for school.”
Despite their improved optimism, consumers may be holding out for more proof that economic stability is lasting before any splurging, Paul added, meaning retailers have to make their merchandise and offers extremely attractive to finish the back-to-school shopping season strong.