High energy prices, combined with weak housing and job markets, could foretell difficult holiday season.(Headline)

The Deloitte Research Leading Index of Consumer Spending continued its decline this month, projecting a difficult holiday season for retailers due to high energy costs, a weaker job market, and continued softness in the housing market.

"Softness in the housing market, in particular, suggests that consumers will no longer be able to use their homes as credit cards--at least not to the extent that they have in recent years," says Ira Kalish, an economist with Deloitte Research. "In addition, higher energy prices are negatively affecting real wages and the unemployment rate is edging up, creating uncertainty for the upcoming holiday season."

The index, comprising four components-tax burden, initial unemployment claims, real wages and real home prices--came in at 2.82 percent, down from an upwardly revised gain of 3.15 percent a month ago.

Highlights of the index, which tracks consumer cash flow as an indicator of future consumer spending, include:

* Tax Burden: Growth in the personal tax burden continues to accelerate. Federal tax receipts from personal income are up 15.4 percent from a year ago, on top of a 15.5 percent gain in ...