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The National Retail Federation (NRF) has raised its forecast for U.S. holiday retail sales, citing a positive holiday shopping season.
Retail sales during the season of goodwill may rise 3.8% to a record $469.1 billion, higher than an earlier forecast of 2.8%.
The new forecast is still lower than the 5.2% growth seen last year, but is above the 10-year average increase of 2.6%.
The retail industry trade group, NRF revised the forecast after finding that industry sales for November rose 4.5% year-over-year, and that the average American has completed far less of their holiday shopping than in previous years.
NRF Chief Economist Jack Kleinhenz in a statement said:
“Consumer spending this holiday season has surpassed expectations, though many shoppers continue to stick to their budgets and buy only what they need.”
According to NRF President Matthew Shay, retailers are cautiously optimistic that the season will turn out better than initially expected, but there are a number factors, including the debt crisis in Europe and continued political wrangling in Washington, that could impact consumer spending this holiday season and into 2012.
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