The National Retail Federation on Wednesday predicted a “challenging” holiday season, projecting gains of 2.2 percent to $470.4 billion in the U.S. While a gain, this figure would fall below the ten-year average of 4.4 percent growth.
NRF based these figures on various economic indicators, including the struggling housing market, rising unemployment and food and energy costs.
“Current financial pressures and a lack of confidence in the economy will force shoppers to be very conservative with their holiday spending,” NRF Chief Economist Rosalind Wells said as part of the finding. “We expect consumers to be frugal this season and less willing to splurge on discretionary items.”
For more information on NRF’s projections, visit www.nrf.com