Santa’s load will be lighter once again, with crucial year-end holiday sales expected to decline for a second year in a row, according to an industry forecast Tuesday.
Although many Americans have had a year to absorb shocks to the economy and to their own household budgets, the National Retail Federation (NRF) said continued job losses and stagnant income growth are forcing most consumers to keep shopping with extreme caution.
To that end, the trade group forecasts that this year’s holiday sales for the combined November-December months will decline 1% to $437.6 billion. The decline would be narrower than last year’s 3.4% drop for the season.
The two-month period can account for as much as 50% or more of merchants’ profits and sales for the full year.
NRF’s chief economist Rosalind Wells said she has seen some signs of a recovery in consumer spending after a dismal year thus far for retailers. Specifically, she pointed to somewhat better-than-expected retail sales in August.
“Consumer confidence hit a bottom [this year] and has improved with the bottoming in the housing market, but it’s still wavering month to month,” she said.
“As the global economy continues to recover from the worst economic crisis, Americans will focus primarily on necessities this holiday season,” said Wells. Hard money training
Tags: economy, Global Economy, money, sales
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