Halloween 2012 sales expected to hit record-setting $8 billion - NEWS10 ABC: Albany, New York News, Weather, Sports

Halloween 2012 sales expected to hit record-setting $8 billion

LOS ANGELES – Americans are expected to be more liberal with Halloween purchases this year.

Halloween spending is expected to grow 10.7 percent from 2011 to reach a record setting $8 billion, according to research firm IBISWorld.

"Rising consumer sentiment and disposable incomes have allowed total spending on Halloween to increase every year since its low of $5.0 billion in 2009, which was a massive 18.5 percent decline from 2008," said IBISWorld analyst Olivia Tang.

Costumes are expected to make up the largest proportion of Halloween spending at 35.8 percent, a 12.2 percent increase to $2.9 billion in 2012. Consumers are beginning to move away from the DIY costumes popularized by the recession.

With the price of sugar rising, the price of candy is affected – but that won't hurt sales which are expected to remain strong, accounting for $2.4 billion of Halloween sales.

Decorations will also see a strong increase in consumer consumption, but shoppers are expected to spend less on greeting cards this Halloween.