Americans will raise their holiday spending by 1% this year, offering "glimmers of hope" for retailers, according to a trade group.
A survey by the National Retail Federation showed that U.S. consumers plan to spend an average of $688.87 on holiday-related shopping, Bloomberg News reported. Of the total, $518.08 will be spent on gifts.
"Consumers will still shop with the economy in the back of their minds, but we are starting to see shoppers take steps toward a new normal," Matthew Shay, president of the NRF, said. "As Americans open up their wallets for more discretionary gifts like jewelry or take advantage of sales to buy for themselves, retailers will begin to truly believe that the worst is behind them."
Sixty-two percent of those surveyed said the economy would impact their spending, compared with 65% last year.
The U.S. economy is expected to grow by 2.6% this year and in 2011, according to a survey by the National Association for Business Economics.