Retail sales in fell 2.2 per cent by volume between June and August compared with the previous three months, the Central Statistics Office said yesterday.

While this reflected a decline in the high rate of car sales in the second third of the year, new figures showed spending continued to rise overall in August.

The increases, however, were much lower than those recorded in April and May, when the value of sales rose in excess of 20 per cent when compared with the same months in 1999.

In August, the value of retail sales rose 13.5 per cent when compared with August last year. The volume of sales, excluding price effects, rose 8.8 per cent in the same period.