The National Retail Federation (NRF) expects that by the fourth quarter, sales will be recovering; it projects a gain of 3.6% for the last three months of this year.

 

      Just as "comfort food" is taking centre stage on American plates, the ritual of choosing, buying, wrapping and giving Christmas gifts, with all the attendant entertaining, will be a solace for Americans this year, predicts Kit Yarrow, a consumer psychologist at Golden Gate University in San Francisco.

 

      Consumer electronics, always driven by the latest features, will still be a bright spot, predicts Yarrow. But for holiday décor and gift-giving, Americans will gravitate towards gifts with classic styling and substantial quality.

 

      Exhibitors at January's New York International Gift Fair were operating on the assumption that "people are still willing to spend, but only for something that is special and well made, and products that have a story," reports Cathy Steel, who handles public relations for the fair.