Retailers shrugged off a slow start to festive season trading and have entered the new year with plenty of optimism.

While the global economy has had some impact on Australia's manufacturing sector, retailers have had a bumper season according to Stockland Traralgon plaza manager Allan Clark.

``Our month of December was up by 7.1 per cent in terms of foot traffic and we have had many very favourable days,'' Mr Clark said.

``It all really started on the Friday prior to Christmas and we have had many exceedingly busy days.

``Profit was up by six per cent on last year, so where's this recession?''

Mr Clark said the `fear' attached to the economic crisis did little to deter shoppers from spending up big during the Christmas season.

``I would imagine tourism has a lot to do with why things went so well during Christmas and I don't think this recession has stopped people from travelling,'' he said.

``We don't have unemployment uncertainty which would cause caution in Traralgon or the Latrobe Valley, we don't have the effects of the crisis at this point.

``Just look at the basics of Traralgon, we've got an exploding population, a very good future for the economy whether we have state or federal spending and local investment certainty.

``It hasn't slowed down and this bodes well for our economy in total, we're cooking with gas.''

Mr Clark said while Stockland Traralgon expected a drop in sales during January, he predicted it would pick up from February onwards.

Mid Valley Shopping Centre in Morwell also recorded a surge in foot traffic over the Christmas-New Year period.

While centre manager Sjaala Harbridge had yet to analyse the sales figures, she said most retailers had recorded positive spending patterns during December.

Moe Traders Association member Wendy Baillie believes the Federal Government's lump sum `bonus' to pensioners and low income families helped Moe traders record strong sales during December.