NRF Expects Economic Slowdown in '06

Share this content:
NEW YORK--The National Retail Federation expects an economic slowdown and restrained consumer spending that will trim industry sales gains.


Overall retail sales will grow an estimated 4.7 percent this year, down from last year's 6.1 percent. The predictions exclude automotive, gas stations and restaurant sales.


"With the housing market beginning to slow, consumers will be challenged to find new sources of spending power," NRF chief economist Rosalind Wells said at the NRF's 95th Annual Convention & Expo.


High energy costs also will crimp growth, the Washington-based association said.


The strong retail performance in the second half of 2005 is not likely to be replicated this year. NRF estimates first quarter sales will grow 5 percent versus 6.5 percent in the fourth quarter of 2005.


Though the NRF is cautious about this year, it is projected that the apparel and accessories, food and beverages, health and personal care retail sectors will see steady sales gains in the 4 percent to 5 percent range.


Wells expects chairman Alan Greenspan's replacement at the Federal Reserve, Ben Bernanke, will play a key role in crafting monetary policy that curbs inflation.


NRF said near-term underlying inflationary pressures appear to be under control, productivity is high and unit labor costs are low. These factors should give the Fed some breathing space.
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above