HAccording to December 2005 Retail Sales data, it was a sad Holiday Season for retailers this Christmas.

But don't starting think that high gas prices are taking a toll on spending.  Spending is doing just fine, thankyouverymuch.

See, Retail Sales data ignores in the most popular Holiday Season gift -- the gift card. 

Gift cards purchases are not actually put on the books until they're used to purchase actual goods.

Post-Christmas, when stores are full of shoppers toting gift cards, the Retail Sales data starts to register.  If you've been in Best Buy lately, you've seen it personally -- those holographic gift cards are everywhere. 

The cashing in of gift cards should boost to January's Retail Sales data nationally.

But there should be a secondary bump in January's Retail Sales data, too.

When a person redeems a $50 gift card, he rarely spends 50 dollars.  Maybe it's $55, or it's $70, or more.  Regardless, the store is booking more than $50 on that $50 card.  This is one reason why stores love the gift card -- the built-in upsell.

Until that upsell is recorded, though, Retail Sales data will continue to be flawed and/or somewhat "delayed".  Look for a strong January figure.

Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.