NRF Lowers Retail Sales Growth to 3.5%

(IDEX Online News) – The National Retail Federation (NRF) has lowered its retail sales forecast for 2015 because of the unexpected slow growth recorded during the first half of the year, down from the 4.1 percent it predicted in February to 3.5 percent.  

Despite the move, the NRF said it expects sales to steadily increase through the rest of 2015, picking up from the 2.9 percent experienced during the first of the year to 3.7 percent owing to improvements in the housing and labor markets and lower energy costs.

“For years, consumer spending has been hampered by lackluster growth in our economy,” said NRF president and CEO Matthew Shay. “Much of that blame can be shifted to Washington where too much time has been spent crafting rules and regulations that almost guarantee negative consequences for consumers and American businesses alike,” added Shay.

He argues that until the government seriously enacts policies that lift consumer confidence, create economic growth and spur investment, sales performance will continue to be solid, but not exceptional.

“A confluence of events, including treacherous weather throughout the United States through most of the winter, issues at the West Coast ports, a stronger US dollar, weak foreign growth and declines in energy sector investments all significantly and negatively impacted retail sales so far this year, and thus have changed how future sales will shape up for the rest of 2015,” added NRF chief economist, Jack Kleinhenz.

“Additionally, household spending patterns appear to have shifted purchases toward services and away from goods, though this may be transitory.”