Holiday spending to rise 6.5%, Ernst & Young says

U.S. consumers may spend 6.5% more during the holidays than a year earlier as lower gasoline prices and a jump in the stock market encourage buying, accounting firm Ernst & Young said.

Demand for Apple Computer Inc.’s iPods and high-definition televisions will drive spending in November and December, New York-based Ernst & Young said. In 2005, holiday sales increased 6.7%, the firm said.

The season accounts for a fifth of sales at retailers such as Wal-Mart Stores Inc. and Federated Department Stores Inc. and is the most profitable period for most stores.