US retail sales will grow 3.5% to 4.1% this year, despite trade tensions and the spreading coronavirus epidemic, according to the National Retail Federation (NRF).
“The nation’s record-long economic expansion is continuing, and consumers remain the drivers of that expansion,” NRF CEO Matthew Shay said Wednesday 26 February. “With gains in household income and wealth, lower interest rates and strong consumer confidence, we expect another healthy year ahead.”
While underlying uncertainty is a factor, economic growth will continue to flourish, he predicted.
“There are always wild cards we cannot control, like coronavirus and a politically charged election year. But when it comes to the fundamentals, our economy is sound and consumers continue to lead the way,” Shay said.
The organization expects total sales for the year of $3.93 trillion to $3.95 trillion, while online purchases are expected to reach between $870.6 billion and $893.9 billion — a 12% to 15% increase.
Preliminary estimates show retail sales last year grew 3.7% to $3.79 trillion, just short of the NRF’s forecast of at least 3.8% growth. That figure was based on incomplete data due to the government shutdown during part of the period. Online purchases increased 13% to $777.3 billion.
