Deloitte Consumer Spending Index Declines in May

New York, NY, June 20, 2011 -- The Deloitte Consumer Spending Index continued to decline in May, weighed down by a sharp rise in unemployment claims last month, the company said.

 The index tracks consumer cash flow as an indicator of future consumer spending.

"The labor market indicators are the primary cause of weakness in the index, however the economy is up against other temporary headwinds that suggest weak growth may persist for the near term," said Carl Steidtmann, Deloitte's chief economist and author of the monthly index.

"Rising food and energy prices continue to hurt real wages, which combined with Americans' insecurities about the job market, compound the pressure on consumer spending."

The index, which comprises four components — tax burden, initial unemployment claims, real wages, and real home prices — fell to 2.66 percent, from an upwardly revised gain of 3.29 percent a month ago.