NABE: Consumer spending expected to see bump this year and beyond

Even though many experts believed the sequester would have a negative impact on the economy and consumers, spending expectations have improved. 

With consumers expected to spend more this year, U.S. retailers might still need to utilize retail inventory financing. Even when small- to medium-sized businesses see increased sales, they can still struggle to replenish inventory on their own dime, as available capital can be limited, potentially leading them to use inventory financing

Consumer spending is projected to rise 2.3 percent this year, according to the National Association of Business Economists. This forecast is up slightly from February, when the NABE projected a 1.9 percent bump in spending. 

Next year, spending is expected to increase 2.6 percent, a slight jump from the previous estimate of 2.5 percent. 

In addition to improved consumer spending, the NABE said economic growth will accelerate to a rate of 2.4 percent this year and 3 percent next year, after a rate of just 1.7 percent in 2012. 

Despite the optimism, there could be some head winds in the future, as the automatic cuts in federal spending will still be a drag on growth, but the improving labor and housing markets should provide a big enough boost for consumers. 

As consumer spending begins to pickup, U.S. retailers could see higher sales. When the time comes to replenish inventory, some might need to turn to retail inventory financing. U.S. retailers already saw an unexpected rise in sales during April, according to the Department of Commerce, and further increases could be on the way. 

This type of asset-based lending allows small- to medium-sized businesses to use current inventory as collateral to obtain a revolving line of credit, which can be used to keep shelves stocked.