Consumer spending falling

The housing-market slump and a rise in unemployment claims recently are beginning to show an effect on consumer spending habits.

“With initial unemployment claims up in recent weeks, the labor market is showing some early signs of weakening, which could put pressure on consumer spending,” Carl Steidtmann, chief economist with Deloitte Services LP?s Deloitte Research, said in awritten statement. “Home prices continue to be weak; however, lower mortgage rates are giving a boost to mortgage applications, and there are some signs that the housing market is stabilizing.”