by Daniel Costello

Note to Wall Street: Don't expect Christmas to cheer you up this year.

The National Retail Federation said Tuesday it is predicting holiday sales will grow at their slowest pace in six years as consumers fret about their jobs, Wall Street and the economy.

According to the trade association, retail sales during November and December - excluding auto, gas and restaurant spending - are expected to rise just 2.2, to $470.4 billion, a much slower pace than the average annual increase of 4.4% over the past decade. That would make 2008 the worst holiday season for retailers since 2002, when sales increased only 1.3%.

The group cited financial pressures such as the faltering housing market, rising unemployment and high food and energy costs.

"Current financial pressures and a lack of confidence in the economy will force shoppers to be very conservative with their holiday spending," said NRF Chief Economist Rosalind Wells. "We expect consumers to be frugal this season and less willing to splurge on discretionary items."