December 2, 2013 Last Updated 1:34 pm

Research firm IBISWorld predicts 3.4% growth in holiday spending

Tighter budgets will cause consumers to spend less this holiday season

The holiday shopping season has gotten off to a bit of a slow start, as many retailers are reporting disappointing Black Friday sales. Although reports are that that number of shoppers is up a bit, those buying gifts are being a bit hesitant to spend more this year.

The research firm IBISWorld has issued a press release today that predicts modest growth this year in holiday spending – only 3.4 percent over 2012.

“In 2013, IBISWorld forecasts the category to grow 3.1 percent to $53.3 billion. In an effort to reduce expenses, consumers are expected to purchase presents for a smaller network of people. Americans are returning to the heart of the holidays, spending time and money on family, friends and loved ones that matter most,” the report states.

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The electronics category will continue to have robust growth, the report predicts, with sales up 6.6 percent. IBISWorld also says that spending on greeting cards and postage will grow a hefty 6.5 percent as family members choose to send cards, and sometimes gift cards, in lieu of a boxed gift.

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