As the holiday shopping season reaches its peak, merchants both in Ames and nationally are seeing high sales numbers.

The National Retail Federation predicted holiday sales would increase 5.7 percent from last year, the largest rise since 1999, to $217.4 billion in revenue. Retailers could see their highest increase in sales in four years.

Kenneth Stone, professor of economics, forecasted a 4 percent rise in total sales for Iowa retailers this season.

“Iowa should see an overall rise in sales this season,” Stone said. “The only problem is the small- town stores will suffer because people are leaving the small towns to go to the big cities.”

Many stores are trying to recover from the shopping season last winter when sales grew only two percent, which was the worst America had seen in a decade.

Stone said slow holiday seasons result from a number of factors.

“In 2000 people started slowing down their spending, so the past three years have been pretty rotten bad periods for retailers. The attacks on the World Trade Center on Sept. 11 messed with people’s expectations. When people are very anxious and uncertain about the future they spend less,” Stone said.

Mike Veach, merchandising manager at Best Buy, 1220 S. Duff Ave., said last year was difficult for business.

“With the economy last year, it was a pretty tough Christmas for everyone,” he said. “This year people have been happier and in the stores more.”

According to the National Retail Federation, low interest rates, tax breaks and a relatively bullish stock market are reasons Americans are comfortable spending more this holiday season. Also, the economy grew at its fastest pace in 20 years between the months of July and September.

“The economy is obviously turning around, consumers have gotten back some nice tax rebates from the government and less is being taken out of their paychecks. This creates a general feeling of being better off and that maybe it’s OK to spend more money,” Stone said.

The National Retail Federation said American consumers will spend an average of about $672 this year, up from $649 last year. Consumers will spend about $518 for gifts, $393 of that on family members.

“I would definitely say business has been very good this year so far, but it is still pretty early to tell,” Veach said.

Consumers are not just hitting the malls this year; online shopping is also becoming very popular.

According to Jupiter Research, an online marketing research group, online shoppers will spend about $16.8 million on online gifts this season, a 21 percent increase over last year.

Mark Oleson, financial planning counselor and assistant professor of human development and family studies, said students are staying fairly consistent with their spending this year versus other years and don’t really adjust their spending according to the economy.

“I think the holiday spending has been high by students regardless of the economy,” he said. “Students generally wouldn’t have a problem shopping if the economy wasn’t good.”

One ISU student agreed and said she has spent about the same amount of money this holiday season as last year.

“I don’t really pay attention to the economy. I just try to shop for the best bargain and pay the lowest price for the gift I’m buying,” said Kelly McGee, senior in graphic design.