Holiday sales expected to rise 3.7 percent, slower than last year

Americans are expected to spend at a slower pace this holiday season compared to last year, according to the National Retail Federation, which cited slow wage growth as a contributing factor.

The nation’s largest industry trade group predicts spending will be up 3.7 percent to $630.5 billion, slower than the 4.1 percent increase experienced during the same November-December period in 2014. Online spending meanwhile is expected to increase between 6 percent and 8 percent to as much as $105 billion, ahead of last year’s 5.8 percent increase.

The slowdown in overall holiday spending is the first since 2011, when sales were still up 4.6 percent but down from 5.2 percent the previous season due to high unemployment rates and deeper discounts.

Despite the slow growth, estimates of holiday sales still top the 10-year average of 2.5 percent. The segment is slowly recovering after taking a 4.6 percent downturn in 2008 from the previous year’s season, according to The Associated Press.

Read more from The Associated Press.