Good News for Retail Sales
After months of hearing negative reports about our current economy, it’s good to hear that a positive forecast finally came out about economic growth for the year 2014. In a new release from National Retail Federation, Bethany Aronhalt and Kathy Grannis report that NRF forecasts a 4.1% increase in retail sales, and online sales are expected to grow between 9 and 12% in 2014.
Factors contributing to the forecast include the following:
Economic growth is expected to surpass its long-term historical average, Growth as measured by real GDP could show a noticeable improvement, from between 2.6 and 3 percent, compared to last yearâs1.9% rate. This is the fastest pace in the past three years.
Approximately 185,000 jobs per month are expected to be added to the labor market. This should drop unemployment to near 6.5% by the end of the year.
Inflation is expected to increase to as much as 1.7% in 2014. This is a figure measured by the CPI.
Stronger household and business confidence is expected to promote more consumer spending, improving the housing sector.
Susceptibilities still exist, such as the challenges of the harsh weather, health care cost concerns and the realities of domestic and global financial issues, but NRF is cautiously optimistic and hopeful that the overall economic situation will change in a positive direction in 2014. Thatâs good news for all of us!