Sales at U.S. retailers were up 1.3 percent in November from October, beating economists’ forecasts of an expected 0.6 percent jump, Bloomberg reported.

The increase, which followed a 1.1 percent gain the prior month, signaled a swell in consumer confidence heading into 2010.

“Consumers are no longer in hunkering-down mode, because they are feeling a little better about the economic situation,” said Michael Moran, chief economist at New York-based Daiwa Securities America Inc. Moran had projected a 1.2 percent increase in sales. “It’s positive for the economy over the next couple of quarters. This is an unwinding of very sharp cuts. We need to see better job growth to get sustained gains.”

As the pace of job cuts slows – last week the Labor Department reported the economy lost 11,000 jobs in November, the smallest decline since the start of the recession in December 2007 – retailers are also using discounts to attract holiday shoppers.

According to the National Retail Federation, discounts on electronics and toys contributed to a 0.5 percent advance in sales on Black Friday and the weekend following the Thanksgiving holiday.

“You’re going to see great values throughout the holiday selling season,” said Brian Dunn, president and CEO of Eden Prairie, Minn.-based Best Buy. The electronics chain lured shoppers with 42-inch Samsung flat-panel TVs priced at $547.99.

Consumer spending is expected to climb at a 1.7 percent annual rate this quarter, according to the median estimate of economists surveyed this month.