US holiday sales expected to rise 2.8%

US holiday sales are expected to rise a modest 2.8 per cent in 2015, as a sluggish economic recovery is likely to weigh on consumer spending, analytics firm RetailNext said on Friday.

The company, which tracks large US retailers and specialty stores, also expects foot traffic to drop 8.1 per cent during November and December from a year ago.

However, shoppers are likely to spend slightly more on average than a year earlier, during the most profitable season for retailers. Some stores make about one-third of their annual profits in the last two months of the year.

Last week, the National Retail Federation estimated a 3.7 per cent rise in holiday sales, slightly less than last year, as US consumers remain concerned about a possible government shutdown, slow job creation and income growth.
 
Analysts have also forecast slower retail growth this holiday season, reflecting worries about turmoil in the financial markets as well as the stagnant economy.