According to the NPD Group, retail sales in the U.S. toy industry increased almost 3 percent, generating over $8 billion in the first half of 2007 (January – June) compared to $7.8 billion generated during the same time period in 2006.

The strong performance of seven super-categories helped the industry experience positive dollar sales growth for the first half of 2007. Vehicles saw the most growth, increasing 17 percent, with Infant/Preschool, Youth Electronics, Plush, Arts & Crafts, Building Sets and Games/Puzzles showing respective dollars sales increases of 4 percent, 8 percent, 9 percent, 6 percent, 4 percent and 3 percent, over year-to-date (YTD) 2006. Combined, these seven super-categories comprised over $4.5 billion in retail sales.

Of the 11 super-categories, only three saw declines in sales, and only one experienced flat sales over YTD 2006. The two super-categories experiencing the largest declines were Action Figures & Accessories, and Outdoor & Sports Toys, with both seeing decreases of 4 percent.

Action Figures, which also experienced a decline during the same time period last year, should begin to see a boost in sales, thanks in large part to this summer’s major motion picture properties that specifically target children and tweens. Dolls sales were flat, reversing last year’s negative trend when sales for the first half of 2006 declined 4 percent vs. first-half 2005 sales.

“It’s obvious that the new product innovations we’ve been seeing in the toy industry have had a positive impact on overall toy industry sales,” said Anita Frazier, industry analyst, The NPD Group. “Based on NPD’s research, parents believe toys are more interesting and stimulating than ever. Taking this into account, along with strong sales during the first half of the year, the industry is heading into the all-important back half of the year in a very strong position.”