On Wednesday, US National Retail Federation, the Washington DC-headquartered world’s largest retail trade organization, had raised its full-year retail sales estimate for the United States in 2021 between 10.5 per cent and 13.5 per cent, as an acceleration in vaccination drive alongside massive Government stimulus had eclipsed a marginal moderation in US labour market which the White House said, would likely to be shortlived.
In point of fact, latest remarks from the National Retail Federal comes over the heels of a sharp shoot-up in US Consumers’ confidence last month, while US retail sales were picking up lately following a ludicrous lull on April.
Though, a record upsum in savings of US consumers would highly likely to back Wednesday’s NRF data, suggested analysts. Aside from that, as more pandemic-wary Americans began to step outside following a nearly 15-month long pandemic-led restrictions, an initial thrive in spending is widely anticipated, while a mammothlike US stimulus alongside an additional $300 per week in state unemployment benefits at least until August 1, would likely to add a torrential high-tide in US Consumers’ spending alongside retail sales.
NRF raises US retail sales outlook for 2021
Meanwhile, according to the Washington DC-based trade body’s statement released late in the day, NRF is expecting between $4.44 trillion and $4.56 trillion in annual US retail sales, up from a $4.33 trillion or an increase in retail sales between 6.5 per cent to 8.2 per cent forecasted in February this year.
On top of that, as the trade body had also raised US GDP growth estimate closer to 7 per cent this year, above an earlier forecast of a rise between 4.4 per cent and 5 per cent, NRF Chief Economist Jack Kleinhenz said, “We are seeing clear signs of a strong and resilient economy.
Most indicators (of U.S. economic activity) point toward an energetic expansion over the upcoming months and through the remainder of the year. ”