Consumer spending comeback coming?

Even as concerns about the economy linger, at least 65% of retailers and suppliers believe consumer spending has improved since last year and could return to pre-recession levels by next year.

So says the second annual retail outlook survey by New York-based CIT Group Inc.

The report, done in conjunction with Forbes Insights, states that retailers and their suppliers have had to work smarter and operate more efficiently during the market downturn over the last three years. They continue to maintain a conservative approach by way of cash conservation, inventory paring and lean staffing.

Retailers also expressed a positive view of the upcoming holiday season, with 68% planning to hire more seasonal workers than last year. Furthermore, 57% expect to stock more inventory this year and 69% plan to advertise more aggressively, though 72% will likely discount more than in 2009.

“The general consensus is that, having weathered the economic downturn, most retailers are in better shape today than in 2009 and have positioned themselves well to meet future consumer demand when it returns,” says Burt Feinberg, CIT's managing director and industry group head of retail finance.