The National Retail Federation (NRF) revised its 2005 sales forecast based on the inclusion of new merchandise categories, predicting that retail industry sales (which exclude motor vehicles, gas stations, and restaurants) will increase 4.8% from last year.

In its quarterly Retail Sales Outlook Report, NRF cites tough comparisons and a slowing economy as contributors to weaker growth than last year. Retail industry sales grew 7% in 2004, the highest growth since 1999.

First-quarter retail industry sales increased 5.4%. NRF's forecast for the remainder of the year is to see gains of 5% in the second and third quarters and a gain of 4.1% in the fourth quarter. NRF had previously forecast a 3.5% rise in sales.

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