Chicago, Oct 21--U.S. consumers are planning to spend more on gifts, greeting cards and other holiday goods this year than they did a year ago, bolstering hopes of a sustainable economic recovery, according to two surveys released on Tuesday.
The National Retail Federation trade group said consumers on average are budgeting $671.89 for this holiday season, up about 3.6 percent from a year ago.
The NRF itself has forecast a 5.7 percent increase in holiday sales, taking into account factors such as impulse buying that increase actual spending. That would be the biggest increase since 1999.
Last year's holiday season generated the smallest sales gain in more than 30 years, prompting many retailers to lower fourth-quarter profit forecasts.
A separate survey by tax and consulting firm Deloitte found that for the first time since 2000, U.S. consumers are planning to spend more than they did the prior year.
Deloitte estimated total holiday spending would increase in the 6 percent to 7 percent range.
"This survey tells us that consumers will be spending more money, over a longer period of time, on a wider array of goods and services," Tara Weiner, a Deloitte managing partner, said.
"The breadth of consumer spending is great news for retailers and the larger economy," she said.
Despite the rosier outlook this year, consumers remain cost-conscious. The NRF survey found three out of four people planned to shop at discount stores. Nearly 40 percent said they base their decision to shop at certain stores on sales or discounts.
Retailers themselves have taken a cautious tone too, with Wal-Mart Stores Inc. and Sears, Roebuck and Co. among those predicting only a modest improvement over last year's disappointing holiday sales.
