Deloitte: Positive consumer spending outlook
Despite a slight dip in its consumer spending index in March, consulting firm Deloitte foresees positive conditions ahead for U.S. consumers.
"The outlook for consumer spending remains healthy," said Daniel Bachman, Deloitte's senior U.S. economist, in a statement. "The Index declined primarily due to a slower increase in median home prices. While housing prices are cooling off a bit, possibly due to the weather, there is no indication that the inventory of houses for sale has suddenly picked up."
Deloitte’s index, which tracks consumer cash flow as an indicator of future consumer spending, is based on four economic indicators – tax burden, initial unemployment claims, real wages and real home prices. The index decreased to 3.51 in March from 4.03 the previous month, said the report.
"Although the economy is continuing to improve, retailers should not take their foot off the pedal," said Alison Paul, vice chairman, Deloitte LLP and Retail & Distribution sector leader. "The month of April has a number of factors that could positively impact sales, from warmer weather conditions to a later Easter holiday and potentially more dollars in the pockets of consumers due to tax refunds. The key will be for retailers to capitalize on these market conditions and leverage its digital channels to influence sales and entice consumers with seasonal offerings in a personalized and moment-appropriate way.”
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