Retails' rising optimism for big holiday

WASHINGTON, Nov. 22 (UPI) -- Lower gasoline prices and strong fall sales are boosting prospects for U.S. holiday shopping, an industry group said Tuesday.

For the first time in its history, the National Retail Federation revised its holiday sales forecast and now expects total holiday retail sales to increase 6 percent over last year to $439.53 billion. In September, the NRF had forecast a 5 percent sales gain.

"Recent consumer spending has surpassed our expectations, and we expect this momentum to continue through the holiday season," said NRF chief executive Tracy Mullin. "Though our forecast remains cautious, we are confident that the holiday sales increase will be better than we originally anticipated."

In October, retail industry sales rose 7.2 percent year-over-year, following strong 7.2 percent year-over-year growth in September. The holiday season is the most important time of year for the retail industry as companies see one-fifth of retail industry sales occur in the months of November and December.

"As gasoline prices decrease, consumers are finding a little extra padding in their budgets," said NRF chief economist Rosalind Wells.

The National Retail Federation is the world's largest retail trade association.