Report: holiday sales "subdued"

Warmer weather and a soft housing market led to "subdued" growth in holiday sales, according to a new report.

Merchants posted gains, but not as big as expected, as holiday sales rose 4.4 percent, below its prediction of a 5 percent increase, the National Retail Federation said today.

One bright spot: December sales at electronics and appliance stores jumped an impressive 13.7 percent from December 2005 as consumers snapped up high-end consumer electronics products such as video game systems and plasma televisions, the federation said.

"Unseasonably warm weather and the slower housing market had a clear impact on consumer spending," Rosalind Wells, the federation's chief economist, said in a statement. The federation "expects these subdued gains to continue into the first half of 2007."
(By Chris Reidy, Globe staff)