US holiday sales are on track to exceed projections for record spending, despite supply chain issues, high inflation and the omicron variant, the National Retail Federation (NRF) said Friday.
"The latest data is encouraging and provides useful insights. In fact, the season could turn out even better than we expected," NRF Chief Economist Jack Kleinhenz said in a statement.
"With the momentum we’ve seen so far likely to continue, it seems probable that we will exceed our initial projection," he added.
Holiday retail sales during November and December could now grow as much as 11.5%, compared to 2020, according to NRF's latest estimates.
If realized, it would beat its previous forecast of growth between 8.5% and 10.5% to reach $843.4 billion to $859 billion.
The first official results of the holiday season will be revealed when the Census Bureau will announce November sales on Dec. 15.
"But overall consumer spending – beyond just retail sales – rose by 1.3% in October, the largest monthly increase since March," said NRF. "The increased retail sales and strong economic indicators come despite falling consumer confidence."
"There was no evidence of a pullback” despite price increases, high inflation and supply chain disruptions, according to Kleinhenz.