American shoppers are expected to spend more than $1 trillion this holiday season for the first time ever, according to the National Retail Federation's annual holiday forecast.
The retail trade organization predicts holiday retail sales in November and December will grow between 3.7% and 4.2% over last year. That translates to total spending between $1.01 trillion and $1.02 trillion.
By comparison, last year's holiday sales rose 4.3% to reach $976.1 billion.
The spending surge comes despite economic uncertainty surrounding the United States. Rises in tariffs, a soft job market and the recent government shutdown haven't deterred holiday shoppers.
Retailers are preparing for the demand by hiring additional seasonal workers. The National Retail Federation expects retailers to hire between 265,000 and 365,000 seasonal workers. That's down from 442,000 seasonal hires last year, reflecting a slower-paced labor market.
Meanwhile, Americans are increasingly relying on credit to fund their purchases. According to the Federal Reserve Bank of New York, credit card balances hit $1.23 trillion nationwide in the third quarter. That's a nearly 6% increase from a year earlier.
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