This holiday season is shaping up to be bigger than the ones before it, with the National Retail Federation (NRF) expecting shopping in America in November and December to increase by 4.1 percent.
This increase, announced by the biggest retail industry trade group in the U.S. on Tuesday, means that the rate of shopping in America will reach the highest it has ever been in three years, according to The San Jose Mercury News. The NRF said spending would rise to $616.9 billion, which is one percent higher than spending last year.
If the group's prediction turns out to be true, stores that rely on the holiday season to make money could be quite pleased, as this time of the year makes up about 20 percent of annual sales for retail stores.
Matthew Shay, CEO of the NRF, said while the last two months of the year could provide an opportunity for stores to make up for low sales in the first half of 2014, consumers' interest in deals could present a challenge, The Los Angeles Times reported.
"It goes without saying there still remains some uneasiness and anxiety among consumers when it comes to their purchase decisions," Shay said. "We expect shoppers will be extremely price sensitive as they have been for quite some time."
There may be more Americans will to spend this holiday season as a result of increase in hiring last month, which led to a decline in the unemployment rate in the U.S. to 5.9 percent, The San Jose Mercury News reported. This is the lowest the employment rate has been in the U.S. in six years. A 6-percent increase in the stock market since the beginning of 2014 may also put Americans in more of a mood to spend money later this year.
However, factors that may persuade Americans to save money this November and December include a lack of an increase in wages and less people participating in the housing market, which is due to higher prices for investors and tight credit for those looking to get a mortgage.
