Holiday retail sales are projected to jump 4.5% this year to $219.9 billion, a bit more modest forecast compared to last year’s holiday sales growth of 5.1%.
Retail sales saw strong growth in the first half of this year and more subdued growth in the third quarter, according to a report released yesterday by the National Retail Federation.
The holiday season, encompassing the crucial months of November and December, accounts for about 23% of annual retail sales.
“Although consumer spending has been inconsistent in recent months, we expect the holiday season to bring more stability to the industry,” said NRF Chief Economist Rosalind Wells, in a statement. “Home-related merchandise and consumer electronics should do well this holiday season and trendy fashions should help spark clothing sales.”
Economic factors affecting holiday sales include higher energy costs, rising interest rates, geopolitical threats and slow income growth, the NRF said.
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