Irish retail sales up, but slowdown clear

Irish retail sales rose in January, but the increases were the lowest seen for at least a year, according to figures released…

Irish retail sales rose in January, but the increases were the lowest seen for at least a year, according to figures released today by the Central Statistics Office.

The value of retail sales increased by a seasonally-adjusted 5.4 per cent in January 2001 against the previous month.

The annual figure indicated a sharp 7.7 per cent increase in retail sales since January 2000, but this was down from 10.2 per cent in December and the slowest rate of growth for well over a year.

"Overall it's still fairly robust, but there is clear evidence that in the last few months consumers have been retrenching," said Mr Alan McQuaid, economist at Bloxham stockbrokers.

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Annual sales growth has fallen back from a 2000 peak of 22.1 per cent in May as Ireland's booming economy has begun to feel the effects of a global economic downturn.

"The US situation and high tech slowdown have both been factors - people might be worried about their jobs," Mr McQuaid said.

Motor sales were the hardest hit, dropping nearly six per cent in the closing three months of 2000 as a nationwide race for cars with '00' number plates ran out of steam.