The volume of retail sales in July rose by 6.8% on the same month in 2006, but only increased by 0.1% compared to June of this year.
The value of retails sales was up 7.9% from July of last year, and was up 0.4% on the month, according to CSO figures released today.
The biggest increase in the three months from April to June of this year was in the textiles and clothing sector, which saw an increase in sales of 6.4%.
The motor trade was slower though, with a 3.1% drop in sales in the second quarter.
Pat McArdle from Ulster Bank said the surprising thing about 2007 is the virtual absence of any SSIA impact, with the notable exception of May when the monthly rate of increase was 1.6% and the annual rise peaked at 10.1%.
'Declining consumer confidence and, more recently, turmoil in financial markets seem to have nipped the SSIA impact in the bud and sales for the year as a whole look like being up about 7% rather than the higher figure that might have been expected if the May trend had continued', he said.
Though this will still compare favourably with 2006 when sales grew by 6.2%, he added.
In July much of this buoyancy was due to food, drink and tobacco, with clothing & footwear and household equipment also displaying very strong rates of growth, with sales in bars and licensed premises continuing to have a torrid time.
Deirdre Ryan, economist with Goodbody Stockbrokers, said that while concerns over all things housing related have continued to bestow themselves on the Irish economic outlook of late, it appears that Irish consumers are still defying the negative sentiment that surrounds them.
On a three month measure retail sales growth has slowed from 8.2% yoy in May to 7.7% in July, although this still remains very impressive in an historical context.
She said that while the weather has played some role in this moderation in spending, it appears that in the month of July the main drag on spending growth arose from weaker car sales.
She said that electrical goods sales volumes were ahead by 15.7% yoy in the three months to July, while furniture and lighting sales volumes grew by 10.8% yoy over the same period.
'In total these data are encouraging given the much documented slowdown in the housing sector', she said.
