Official figures show that retail sales rose sharply in January, boosted by a strong start to the year for car sales.
The Central Statistics Office figures - which are adjusted to take account of seasonal factors - show that the volume of sales was up 4% compared with December, bringing the annual rate of increase to 7.3%.
The monthly rise was the strongest for a year. But when motor sales are stripped out, the monthly rise was just 0.3% and the annual increase was 6.3%. Motor sales were up 6.7% in volume compared with the previous month.
The value of retail sales, which takes prices into account, showed a monthly increase of 3.9% and an annual rise of 8.5%.
A breakdown of the monthly figures showed a 7% drop in the volume of department store sales, but sales in the hardware, paints and glass category surged 17.5%. Bar sales were up 1.5% in the month, but are ahead only 1.5% over the last 12 months.
Chief economist with Ulster Bank Pat McArdle said that January was the third weak month on the trot for retail sales but the overall picture was saved by the motor trade which had a cracking January.
He said persistent interest rate increases, high energy prices and the absence of a feelgood factor have sapped confidence and dampened the influence of an expansionary budget and curbed the spending potential of released of SSIA moneys.
He said that although an acceleration in spending may yet materialise, a few more months like this will force Ulster Bank to pare back its consumer spending estimates for 2007.
