Forget the jobs report, this must be the clearest indicator that the economy is recovering.

Americans are expected to spend a record $370 million this year on Halloween costumes for pets, according to the National Retail Federation. That's a whopping 40 percent more than what we spent on our pets just two years ago.

While the recession may have taken a toll on pet ownership, as Americans own fewer pets than they did in 2006, it seems we're not penny pinching when it comes to buying our animal friends top-of-the-line products. National pet spending surpassed $50 billion for the first time in 2011.

The average American is expected to spend $79.82 on Halloween this year, according to the NRF. Nationwide, spending is expected to hit $8 billion.

(Hat tip: Moneyland)

Check out some of our favorite pet Halloween costumes!

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  • A Pig

    It's a pig in a blanket! No wait, it's a dog in a pig's blanket? I'm confused.

  • A Taco

    Looks like there is more than just beef in that taco...

  • A Devil

    Now your dog can show his true colors after leaving you a little present on your carpet.

  • Hot Dog....Dog

    Please, no ketchup for me, just mustard.

  • The Runaway Bride

    Julia Roberts ain't got nothing on this pooch.

  • A Skeleton

    Can someone give this dog a bone? PLEASE?

  • Rockstar

    What's black and white and red all over?

  • A Sheriff

    One...two...three...DRAW!

  • A Witch

    No Halloween celebration is complete without a haunted black cat running around!

  • A Tiger Dog

    I am tiger hear me ROAR!

  • A Tiger Cat

    No I am a tiger! Or at least a cat, which is in the same family.

  • A Flower

    So cute...but a nightmare for someone with allergies!

  • Dorothy from The Wizard of Oz

    Has anyone seen The Tin Man?

  • Superman

    It's a bird! It's a plane! It's a.....dog?

  • A Pumpkin

    It used to be that your dressed up your baby like a pumpkin. Now it's one of the most popular costumes for your dog.