Washington – Retail sales are expected to
rise 2.5 percent in 2010, as revenue rebounds from last year’s 2.5 percent
decline.
The projection, by the National
Retail Federation (NRF), is based on a slowly thawing job and housing market
which is expected to boost consumer confidence throughout the year.
The forecast covers all retail
industry sales except automobiles, gas stations and restaurants.
“As we continue to see signs of improvement
throughout the U.S economy in 2010, overall sentiment will begin to lift,
making way for slight increases in consumer spending,” said NRF chief economist
Rosalind Wells. “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.”
Other positive economic
contributions will come from trade, especially strong exports, a turnaround in
the inventory cycle, and federal government spending, the trade association
said. Consumer spending will lag behind overall economic growth, Wells
estimated, but will continue to expand at a modest 2 percent to 2.5 percent
rate.
