National Retail Federation projects 4% increase in 2011 retail sales

The National Retail Federation has projected that retail industry sales for 2011 (which exclude automobiles, gas stations and restaurants) will increase 4% from 2010. The cautiously optimistic outlook comes on the heels of 7 consecutive months of retail sales growth and better than expected holiday sales.
With retailers ending 2010 on a strong note, the prospects for economic growth are starting to look better. However, with small businesses continuing to hold back on hiring and expansion plans and consumers facing higher energy costs, questions remain about the speed and strength of the retail spending momentum.
“With retailers leading the charge, the economic recovery appears to be gaining some steam,” said NRF president and CEO Matthew Shay. “The fate of the Main Street resurgence ultimately rests with policymakers on Capitol Hill. As Congress begins tackling key issues like deficit reduction and tax reform, it is critical we support policies that encourage job creation, consumption and business investment.”
According to NRF’s latest Retail Sales Outlook report, while consumers are once again showing a willingness to spend, inflation from rising commodity prices and continued high unemployment could become obstacles to economic growth.