Driven by a weak housing market, a new report indicates Americans reduced purchasing activity in November.
According to accountancy firm Deloitte, consumer spending slid to 1.75 on its Consumer Spending Index, down from 1.96 in October. The Index takes four aspects into consideration to assess buying activity, those being the tax burden, initial unemployment claims, real wages and real home prices.
Alison Paul, vice chairman of retail and distribution for Deloitte, said consumers practiced self-restraint in November by making well-informed decisions before buying. She added that this was largely helped by the fact that retailers increased their staffing to help consumers as they prepared for the holidays.
"The retail sector added more people to their payrolls last month, showing the strongest November increase in retail jobs since 2007," said Paul.
The study also detailed that home prices fell in November and were 6 percent lower than the same month in 2010. Consumers who may be thinking about entering the housing market may be able to buy at an affordable rate of interest after ensuring their credit scores are in healthy territory.