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According to the US National Retail Federation, it expects retail sales in the country to rise by 4 percent this year.
If the forecast comes true, it will be another indicator that economic recovery in the country is going well.
NRF Chief Executive Matthew Shay said in a statement that “with retailers leading the charge, the economic recovery appears to be gaining some steam.”
However, the industry group said that high gas prices and small businesses avoiding hiring new employees may hamper the growth of retail sales.
The group said that it became “cautiously optimistic” after seeing the better-than-expected performance of the sector during the holiday season of last year.
The NRF revealed that the holiday season of 2010 was the best season of the retail industry in six years. There was a 5.7 percent increase in retail sales for the said season, the NRF said.
