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Ahlum Beruk, 22, a Greenville, Miss., resident who was visiting Atlanta, was a student last year and worried about finding a job. This year she works for a hotel and spent about $100 on Christmas presents. She spent nothing on gifts last year. "I do feel better because I have a job now, and I didn't before," she added. Shoppers still face many hurdles. In fact, while the job market is steadily improving, the unemployment rate is still high at 8.6 percent. And housing remains wobbly. The Standard & Poor's/Case-Shiller index of home prices, also released Tuesday, dropped in October in 19 of the 20 cities it tracks. It was a second straight declining month, further evidence of a bumpy housing recovery Lynn Franco, director of The Conference Board Consumer Research Center, noted renewed fears about a second recession hurt confidence last summer. "While consumers are ending the year in a somewhat more upbeat mood, it is too soon to tell if this is a rebound from earlier declines or a sustainable shift in attitudes," Franco said. "Have we rebounded from a summer lull or are we turning the corner?" In fact, even with the increase in confidence, shoppers have been focused on deals this holiday season. Shoppers, enticed by expanded hours and bargains, packed stores for the start of the holiday season, resulting in discount-fueled record spending. But then they retreated for a few weeks to wait for better deals. Based on the stronger-than expected start and rising optimism that more spending was to come in the finale, the National Retail Federation earlier this month upgraded its holiday sales growth forecast to 3.8 percent, from the original forecast of 2.8 percent made in September. More data will be released this week that will help quantify the last-minute sales surge. Still unclear is how the discounting will affect stores' profit margins. It might not be all bad for retailers: Roxanne Meyer, a retail analyst at UBS Investment Research, says post-Christmas markdowns were not as deep as expected, with less than half of retailers she surveyed increasing promotions from last year.
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