The long-awaited year-end numbers are in, and despite massive recalls and a sluggish economy, The NPD Group reports that the US toy industry generated US$22.1 billion in revenue for 2007, marking a 2% dip from last year.

According to the Port Washington, New York-based research firm’s new report, strong performances in two key super-categories helped offset losses. Sales of action figures and accessories were up 8% over 2006, while vehicles experienced a 6% bump in the same period.

On the downside, the most significant losses were experienced in infant/preschool (down 5%), outdoor and sports toys (down 5%) and doll (down 8%) categories.

On the licensing front, top properties for the year in the toy aisle included Barbie, Bratz, Cars: The Movie, Crayola, Dora the Explorer, Air Hogs, Hannah Montana, Spider-Man and Transformers. Licensed toys now account for 27% of the total market.