Retailers all over the world are not so upbeat about forecasts for the holidays although sales in November and December are expected to go up by at least 3 percent.

In the U.S., people are not likely to spend more than they did in 2010 during the last quarter, stated a Bloomberg report in Sept.

The International Council of Shopping Centers (ICSC) previously predicted that the increase will be above the 2.6 percent average gain during the last 10 years and can be described as relatively decent.

The Washington Post reported that the U.S. National Retail Federation expects a measly 2.8 percent increase in holiday retail sales or $465.6 billion which is way below the 5.2 percent increase retailers experienced in 2010.

Many people conclude that because of the debt problems most European nations are encountering along with the fragile national economy, another recession is remotely possible.

Consumer spending answers for about 70 percent of the total economy and the holiday months normally generate up to 40 percent of all retail sales.

A research outfit, Kantar Retail, conducted a survey which showed that the viewpoint of shoppers, despite the inclination to spend less, remains better than compared to 2009 when the U.S. had just emerged from a recession.

Only 35 percent of the 4,004 people polled intended to spend much less this year, compared with 43 percent in 2009, the Post reported.

Another retail analyst, Shopper Trak announced that specialty outlets may be compelled to reduce prices to be more competitive since discount chains will definitely bring down their costs. However, upscale stores have a captured market in wealthy consumers and those who prefer products that are more durable than bargain items.

"Prospective shoppers may not be that eager this year amid the unemployment scenario, higher gas and food prices and persistent instability in the stock market, said federation chief economist Jack Kleinhenz.