With consumer confidence lifting, the National Retail Federation is predicting that retailers may reap some of the benefits of this renewed self-assurance.
The NRF expects retail industry sales (which exclude automobiles, gas stations, and restaurants) will increase 2.5% from last year, according to its 2010 economic forecast.
It cited influential economic indicators such as positives signs in the housing market and employment, which will continue to bolster consumer confidence throughout the year. Total industry retail sales for 2009 declined 2.5%.
“While we still expect shoppers to continue to be frugal with their discretionary spending, retailers will soon be able to reap the benefits of leaner, smarter inventories and a year and a half of pent up consumer demand,” NRF Chief Economist Rosalind Wells said in a release.
Other positive economic contributions will come from trade, especially strong exports, a turnaround in the inventory cycle, and federal government spending, the NRF said.
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