Retail sales jumped by 8.2 per cent in July, the second largest monthly rise this year, on the back of strong car sales, which benefitted from the introduction of new 142 registration plates.
However, when volatile motor trades are excluded, retail sales fell by 0.7 per cent on the previous month, suggesting recovery in the sector is still weak.
The latest figures from the Central Statistics Office (CSO) indicate retail sales have risen by 8.6 per cent on an annual basis.
A breakdown of the CSO figures showed the sector with the largest monthly increase was motor trades, where sales increased by 36.1 per cent.
Sales of books, newspapers and stationery were also up by 4.3 per cent, while sales of electrical goods rose by 1.5 per cent.
Conversely, the sector with the largest monthly declines were furniture and lighting, which fell 10.7 per cent, fuel (-8.8 per cent) and other retail sales (-6.4 per cent).
“Consumer spending remains erratic on a monthly basis though on a year-on-year comparison it is well up on the same time last year, which is encouraging,” said Alan McQuaid of Merrion Stockbrokers.
“There have been clear signs of stronger personal expenditure, particularly in relation to new cars, concert tickets and online internet shopping. Although there is still a general air of caution among consumers, there seems to be a view that the worst is over following the downturn of recent years,” he added.
Retail Ireland, the Ibec group that represents the retail sector, described the figures as positive, noting sales of cars as well as items for the home, such as furniture and electrical equipment, were the main drivers.
However, it called on the Government to reduce income and consumer taxes in the Budget to support the recovery in the domestic economy and put more money in consumers’ pockets.
"Aside from these 'big ticket' items, the statistics are less eye-catching. Sales in supermarkets rose by 1 per cent and in clothes stores by 2 per cent, while the value of sales in petrol stations, DIY stores and book shops fell. Nevertheless, consumers are spending more overall," Retail Ireland director Stephen Lynam said.
