At a time of subdued consumer and business confidence, retailers might have a smile on their face this Christmas.

That’s the thought of Deloitte Access Economics, which expect retailers to have enjoyed sales growth by the end of the year reminiscent of that before the global financial crisis six years ago.

“Despite an economy which on many fronts has been lacklustre, retail spending has continued through the year achieving solid gains,” Deloitte partner, David Rumbens, says.

Retailers surveyed by Deloitte are also more confident about increasing their margins this Christmas in an environment of low interest rates and rapid house price gains.

Household retailing has led the way, buoyed by additional housing construction.

Retail sales growth, adjusted for inflation, is expected to have risen by 3.2 per cent in 2014, up from 2.5 per cent in 2013.

However, growth may slip to 2.5 per cent in 2015 and 1.6 per cent 2016 as the impetus of low interest rates fades, Deloitte says in its quarterly Retail Forecasts report released on Wednesday.

AAP