Deloitte Consumer Spending Index Continues To Climb

Index Reaches Highest Level Since October 2007

NEW YORK, Sept. 11 /PRNewswire/ -- The Deloitte Consumer Spending Index moved
up again in August, reaching its highest point since before the start of the
recession. The Index attempts to track consumer cash flow as an indicator of
future consumer spending.

"The year over year pace of decline in real consumer spending appears to have
stabilized," said Carl Steidtmann, chief economist with Deloitte Research, a
subsidiary of Deloitte Services LP, and author of the monthly Index.
"Personal income tax rates are at the lowest levels of the past 50 years and
unemployment claims are down from their peak, while home prices are beginning
to show signs of stabilizing after plunging for the last three years. The
recent strength in auto and home sales indicate that an uptick in real
spending is materializing for a select few sectors. However, U.S. consumers
continue to ride the wave of frugality when it comes to their more
discretionary purchases."

The Index, comprising four components -- tax burden, initial unemployment
claims, real wages and real home prices -- rose to 2.94 percent, from an
upwardly revised gain of 2.39 percent a month ago.

"The recent incentives for autos and housing indicate that consumers are
willing to purchase when given a great deal," said Stacy Janiak, vice chairman
and U.S. Retail leader, Deloitte LLP. "We are seeing various consumer-facing
companies, including retailers, hotels and eating establishments pick up on
this trend. These pricing strategies will likely help win over certain
shoppers during the important year-end holidays. Retailers, however, should
also be taking a longer view. Remaining relevant to customers -- with the
right products and services -- will likely be important for growth,
particularly if today's downshift in spending continues in some form."

Highlights of the Index include:

Tax Burden: The tax burden continues to fall with the weakening of the economy
and the distribution of tax rebates. At 9 percent of personal income, the
average tax rate is lower than at any time in the past 50 years.

Initial Unemployment Claims: Claims have dropped sharply since their peak in
March. Monthly claims are now below 600,000. A sustained decline in initial
unemployment claims is typically an early sign of a recovery in the economy.

Real Wages: Real wage growth continues to post small gains due in large part
to falling prices for energy. Real wages are up 5.1 percent from a year ago,
the largest year over year gain in more than 50 years.

Real Home Prices: Home prices continue to fall but at a much slower pace. Tax
credits for home buyers coupled with low home prices and interest rates are
bringing demand back to the market.

For more information about Deloitte's Retail sector, please visit
www.deloitte.com/us/retail.

About Deloitte

As used in this document, "Deloitte" means Deloitte LLP and Deloitte Services
LP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a
detailed description of the legal structure of Deloitte LLP and its
subsidiaries.

SOURCE Deloitte

Courtney Flaherty, Public Relations, Deloitte, +1-203-905-2708,
cflaherty@deloitte.com; or Daniel Pineyro, Account Executive, Hill & Knowlton,
+1-212-885-0312, daniel.pineyro@hillandknowlton.com