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According to the National Retail Federation (NRF), Halloween is now a $5 billion industry, and the American Express Retail Index reported that consumers spent an average of $98 last year on the holiday, an increase of 21% from 1998. In fact, Halloween''s popularity with consumers has grown consistently for the past two years.Halloween, however, falls on a Tuesday this year, so the weekday event may lack the drawing power of the past three years when it fell on the more festive weekend. Sales for 2000 aren''t expected to increase and will likely remain flat due to the timing, but retailers seem not to be deterred as they focus on capturing market share to boost the Halloween business.

Yet the question remains: Why is Halloween the festival that is expanding now? We indulge in speculation: People (especially baby boomer parents) are more accepting of fantasy and play these days. There is no other nationwide occasion that allows people to indulge in a carnival atmosphere. The overworked, affluent folk who respond to Martha Stewart''s upscale homemaking advice are also receptive to the sprucing up of Halloween--and Halloween provides an unusual array of possibilities, from the creepy to the cuddly, for re-creating an idealized version of the holiday one remembers from childhood.

THE ORANGE Halloween lights went up early this year. And in our neighborhood, there seemed to be a lot more of them--along with tiny ghost dolls hanging from trees, cobweb-like fabric stretched across porches, plastic spiders perched on roofs, and bloody plastic hands emerging from cardboard gravestones. For some reason, Halloween seems to have become a bigger deal than it used to be.It''s not just an impression. In 1999 Halloween became the second-biggest American holiday, based on the amount of money spent on decorations. According to Unity Marketing, Americans spent $659 million on Halloween stuff in 1999, pushing it ahead of Easter into the No. 2 spot. (Christmas is easily No. 1, with $1.9 billion spent on decorating.)

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