US retail sales will rise 2.5 per cent during 2010 as the nation’s economy shows signs of improvement, according to forecasts from the National Retail Federation (NRF).

According to the organisation’s quarterly Retail Sales Outlook report, the housing market and employment are “beginning to show positive signs,” in turn boosting consumer confidence.

The projected 2.5 per cent rise, which does not include the automobile market, fuel stations and restaurants, would reverse a 2.5 per cent retail decline during 2009.

“As we continue to see signs of improvement throughout the US economy in 2010, overall sentiment will begin to lift, making way for slight increases in consumer spending,” said NRF chief economist Rosalind Wells.

“While we still expect shoppers to continue to be frugal with their discretionary spending, retailers will soon be able to reap the benefits of leaner, smarter inventories and a year and a half of pent-up consumer demand.”