(CHARLOTTE) -- Wells Fargo Securities’ economists predict an increase of 5.2% in retail holiday sales this year.  The prediction comes on the heels of solid back-to-back sales gains in September and October.

Overall, consumer spending remains stronger than many analysts forecasted a few months ago, which is a positive sign for retailers and the broader economy.

“It is extremely rare that we have a holiday season where retail sales are really weak,” said Mark Vitner, senior economist for Wells Fargo Securities in Charlotte. “This year, we expect consumers will dig into savings or take advantage of historically low interest rates on consumer credit in order to fuel strong holiday sales. Fortunately, Santa somehow always finds a way.”
 
Despite economic conditions, retailers have seen an increase in sales for 16 consecutive months. While massive markdowns and door-buster giveaways won’t be the key themes this year, retailers will instead likely focus on short-term, targeted promotions, according the Wells Fargo Securities' annual Holiday Sales Preview.

Wells Fargo Securities’ economists expect the most popular gifts this holiday season to include gift cards, tablet computers, video games, and jewelry and accessories.