Retail Expected to Slow Down

The National Retail Federation expects consumer spending to rise 3.7% in the first quarter. Moderate growth will come as a result of high energy costs, and poor job growth according to a study released Monday. "The consumer has been remarkable in shouldering this economic expansion, but now something has got to give," said Rosalind Wells, the Retail Federation's chief economist. This year's projection pales in comparison with last year's 9.9 percent leap in sales in the first quarter -- and that's part of the problem, Wells conceded. However, she's worried that sluggish job and wage growth will keep dogging retailers, especially discounters. "The labor market will continue to expand this year, though our concern is that modest employment growth will lead to modest income growth, which will put a financial strain on consumers," she said. According to a Murdok | Breaking eBusiness News Your source for investigative ebusiness reporting and breaking news.