Here Comes Santa

THE NEWS COULDN'T COME AT A BETTER TIME FOR hard-pressed U.S. retailers. Consumer confidence is strengthening. The cash registers have been ringing busily since September. A sense of optimism is in the air. As the all- important Christmas shopping season nears, the industry is predicting that sales could be as much as 5% above last year. In fact, this may be the best holiday splurge in three years.

A happy combination of factors seems to be putting shoppers in an expansive mood. Says Jack Schultz, president of the National Retail Federation: "For one thing, the election is over, and we're not hearing all that negative talk about the economy anymore. People also seem to feel relieved that we no longer have a gridlocked government." Unemployment, moreover, has improved slightly. And since families have been gradually whittling down their debts, they are feeling less pressure to scrimp as the holidays approach. Ladies and gentlemen, start your lists.

CHART: NOT AVAILABLE

CREDIT: NO CREDIT

CAPTION: RETAILERS REBOUND