U.S. Retail Industry to Rise by 2.5% in 2010, NRF Predicts

Total U.S. retail industry sales will increase 2.5 percent in 2010 compared to last year’s figures, the National Retail Federation (NRF) predicted Tuesday. As the housing market and employment begin to show positive signs, consumer confidence will get a boost throughout the year.

Other positive economic contributions will come from trade, especially strong exports, a turnaround in the inventory cycle, and federal government spending, the NRF stated in it 2010 economic forecast.

“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.”

Total industry retail sales for 2009 declined 2.5 percent, according to the NRF. The 2.5 percent retail forecasted increase for 2010 excludes automobiles, gas stations, and restaurants.