The U.S. leads the pack in the percentage of older adults who have trouble paying their medical bills.
NEW YORK, March 19, 2014 /PRNewswire/ -- The Deloitte Consumer Spending Index (Index) remained flat in February, showing only a marginal change. The Index tracks consumer cash flow as an indicator of future consumer spending[i].
"The fundamentals for consumer spending remain stable," said Daniel Bachman, Deloitte's senior U.S. economist. "While the economy continues to grow at a moderate pace, expect growth to accelerate over the next six to eighteen months, and the outlook for consumer spending to improve along with the economy."
The Index, which comprises four components -- tax burden, initial unemployment claims, real wages and real home prices – ticked down slightly to 3.9 from 4.0 last month.
"While businesses may be inclined to play it safe with regard to their investment strategies, the time may be right to make a strategic play now," said Alison Paul, vice chairman, Deloitte LLP and Retail & Distribution sector leader. "Market conditions -- including access to inexpensive capital and strong corporate balance sheets -- are creating a favorable M&A environment. Retailers thinking about new markets or adjacent categories to enhance their offering and grow the top line could take advantage of these positive deal-making conditions. Of course, growth through M&A is not for everyone, but it could be a powerful option for retailers looking to up their game and appeal to a broader set of customers."
Highlights of the Index include:
Tax Burden: The tax rate stayed at 11.8 percent, consistent with recent months.
Initial Unemployment Claims: The four-week moving averageof initial unemployment claimsfell to 332,600, a seven percent decrease from the previous month.
Real Wages: Real hourly wages moved up 0.2 percent to $8.82, and have been gradually increasing over the past year.
Real New Home Prices: New home prices dipped 2.3 percent to $111,000 from $113,000 the month prior.
About Deloitte's Retail & Distribution Practice
Deloitte is a leading presence in the retail and distribution industry, providing audit, consulting, risk management, financial advisory and tax services to more than 80 percent of the Fortune 500 retailers. With more than 1,400 professionals, Deloitte's retail & distribution practice provides insights, services and solutions assisting retailers across all major subsectors including apparel, grocery, food and drug, wholesale and distribution and online. For more information about Deloitte's retail & distribution sector, please visit www.deloitte.com/us/retail-distribution.
As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
[i] The Deloitte Consumer Spending Index is a proprietary methodology that analyzes economic factors to gauge consumer cash flow as an indicator of future spending. Deloitte's analysis includes data from the U.S. Commerce Department, Bureau of Economic Analysis, U.S. Bureau of the Census, U.S. Department of Housing and Urban Development and the U.S. Department of Labor.
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