Wells Fargo Securities, part of Wells Fargo & Company, published its annual Holiday Sales Outlook (PDF), forecasting a positive outlook for retailers this holiday season. Wells Fargo economists predict a 3.4 percent increase in holiday sales this year, and expect the average holiday shopper to spend more money this season.

“Economic conditions and consumer confidence (PDF) continue to improve as we head into the holiday shopping season,” said economist Michael Brown who co-authored the report with senior economist Eugenio Aleman, both part of Wells Fargo Securities Economics. “The National Retail Federation’s holiday spending survey found that the average holiday shopper is expected to spend 0.4 percent more per person than they did last year.”

Aleman added, “In addition to holiday spending, we expect overall retail sales (PDF) to rise 2.6 percent in the fourth quarter, compared to the same period last year. We anticipate a happy holiday season for retailers and consumers alike.”

As part of holiday sales, Wells Fargo economists are seeing the most sales strength in furniture and home furnishings, clothing and clothing accessories, and non-store retailers, which includes online retailers (PDF).  Some of the weaker sectors compared to last year includes automobiles, electronics and appliance stores.

To read Wells Fargo’s full 2015 Holiday Sales Outlook, please visit https://www08.wellsfargomedia.com/assets/pdf/commercial/insights/economics/special-reports/holiday-sales-outlook-20151116.pdf.