Car sales and some other sectors defied weak consumer confidence to grow strongly in the month of March, the latest retail sales data suggests. According to the Central Statistics Office, overall retail sales recovered from a weak beginning to rise 1 per cent on February levels.

The results confirm a strong performance for the retail sector in the first three months of the year, with volumes rising 7.1 per cent annually.

One analyst said the figures augur well for the economy's performance this year.

Compared with March 2006 levels, sales activity was 7.2 per cent higher compared to the 6.6 per cent annual rise recorded in February 2006. According to Ulster Bank chief economist Pat McArdle, strong vehicle sales accounted for most of the pick-up in growth.

"The monthly figures show that the strength was almost entirely due to the motor trade which bounced back with 2 per cent growth in March," Mr McArdle said yesterday.

The latest figures come in the wake of a Irish Intercontinental Bank/Economic and Social Research Institute survey which showed consumer confidence waning in March.

Mr McArdle added that,despite the rebound, some sectors were experiencing difficulties, with the bar trade in particular "having a torrid time".

"The large, 6.3 per cent decline in March means that the annual rate of increase is again dipping into negative territory, and this well before the increase in the price of the pint which was slated for May."

Sectors apart from motor sales that did well include furniture and lighting sales, which were up 9.1 per cent on February levels, and electrical goods, which rose by 1.6 per cent.

Along with the hardware, paints and glass category and the textiles and clothing category, sales in these segments were up by between 14 and 19 per cent on levels prevailing a year before.

"One area that is expected to be a big recipient of these monies is the DIY sector," Mr O'Leary said.

Alan McQuaid of Bloxham stockbrokers said the figures pointed to a strong performance of the economy in the opening three months of the year. "Based on these numbers and expectations for a further pick-up in personal spending over the remain- der of 2007, there is no reason why GDP growth can't be 5 per cent plus again this year," he said.