The Central Statistics Office reports today that the volume of retail sales increased by 4.6% in May 2005 compared to the same time last year. There was a monthly decrease of 0.7%.
The CSO said that if motor trades are excluded, the annual increase was 5.2% and the monthly change showed an increase of 2.1%.
Today's figures also show that the value of retail sales increased by 6% in May compared to May 2005. However, it motor trades are excluded, the annual increase was 5.9% and the monthly change was a 1.9% increase.
A breakdown of the May figures showed that the volume of car sales dropped by nearly 6% from April, but bar sales increased by nearly 6% in the month.
The February to April figures show that the largest increase in the volume of sales was in the textiles and clothing sector with a 8.3% increase. The department stores sector, with a decrease of 4.5%, saw the biggest decrease of sales during the three month period.
Friends First economist Jim Power said car sales were extremely strong in the early part of the year but had now eased somewhat, while there are signs of recovery in the bar trade after a 'dreadful' year.
He said the figures overall suggested an easing in consumer spending after a very strong start to 2004.
'Although employment and wages are still growing strongly, some elements of the consumer dynamic are not quite as positive. Personal debt levels are high, and the increasing cost of living is eroding discretionary spending power,' said Power.
Davy Stockbrokers said retail sales had been weaker in the second quarter of the year, mainly because of slightly weaker car sales.
In a note, it said the latest spike in oil prices must have influenced car purchase decisions in April and May. Davy said this also helped to explain why sales outside of garages were only flat quarter-on-quarter.
