For beleaguered US retailers struggling with slowing consumer demand, relief could be on the way in the form of an estimated $42.9bn spending boost from federal tax rebates, aimed at steering the US away from recession.

According to a survey of more than 7,000 people for the National Retail Federation, Americans will spend about 40 per cent of the extra $105.7bn due in rebates that will start arriving in May. A further $30bn will be used to pay down debt, $19.8bn will be saved and the remainder either invested or used to pay for medical bills.