Retail sales to climb 3.4% in 2012, report predicts

Despite high unemployment and volatile global markets, retail sales are estimated to rise a modest 3.4% in the new year, a survey says.

That’s below the 4.7% growth that the retail industry saw in 2011, according to industry group National Retail Federation, but healthy considering the economic pressures still facing many consumers.

“Over the last 18 months, retailers have been on the forefront of the economic recovery – creating jobs, encouraging consumer spending, and investing in America,” said Matthew Shay, the group’s chief executive and president. “Our 2012 forecast is a vote of confidence in the retail industry and our ability to succeed even in a challenging economy.”

Dangers that might clamp down on consumer spending in the new year include rising gas prices, fragile consumer confidence and slow income growth.

RELATED:

Europe’s troubles deepen U.S. trade deficit

Target unveils mini-stores concepts, plus Apple displays

Home Depot to hire 2,000 temporary workers in Los Angeles