The Deloitte Research Leading Index of Consumer Spending rose slightly in July due mostly to a slower pace of decline in home prices and the residual effects of the recent tax rebates.
"House prices declined more slowly this month, but they are still down from a year ago and they continue to be the biggest drag on the index," said Carl Steidtmann, chief economist with Deloitte Research, a subsidiary of Deloitte Services LP, and author of the monthly Index.
Researchers also said home mortgage refinancing has all but disappeared, further reducing household cash flow. While inventories of unsold homes have improved slightly, rising foreclosures and a tighter mortgage market will keep downward pressure on prices.
Source: Deloitte Research (08/12/2008)
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