Retailers saw the best holiday sales since 2007 and, once everything is toted up, perhaps the best year-end season ever.

The Washington Post reports:

A strong Christmas Eve would round out a surprisingly successful holiday season for retailers. The National Retail Federation predicts that holiday sales will reach $451.5 billion this year, up 3.3 percent over last year. That would be the biggest year-over-year increase since 2006, and the largest total since sales hit a record $452.8 billion in 2007. A strong finish could even give 2010 the crown.

Poor weather across much of the country and unemployment hovering at 10 percent nationally made little dent in shopper enthusiasm. Many retailers, including the giant Wal-Mart extended their shopping hours beyond normal to meet the rush of purchasers.

The uptick in retail sales comes as Wall Street remains on track to end the year with double-digit gains. Earlier in the week, the Dow Jones average hit a two-year high, peaking at over 11,550. 

While there’s hardly any consensus among economists when it comes to predicting what 2011 has in store, there is wide agreement that while there may be lessening risk of a double-dip recession, there will be no quick rebound in employment levels.

Oil prices remain at elevated levels and some economists are predicting that during next year oil may hit as much as $110 a barrel. 

Rising oil prices have a reverberating effect through the economy, putting pressure not only on commuters but also generating hikes in food prices.

The AP reports that while the year end economic news is good news, there is still lingering concern about the fundamentals:  “The economy hasn't improved significantly from last year. Unemployment is 9.8 percent, credit remains tight and the housing market is moribund. But recent economic reports suggest employers are laying off fewer workers and businesses are spending more. Consumer confidence is rising.”