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Motor jump lifted weak July sales

Retail sales - Underlying trend still weak
Retail sales - Underlying trend still weak

Official figures show that a pick-up in motor sales masked a continuing sharp fall in consumer spending in July.

The Central Statistics Office said the volume of sales rose by 2.3% from June. This was the first monthly increase since December last year, and was mainly the result of a pick-up in the motor sector following changes to the tax system brought in on July 1.

But when the boost from motor sales was excluded, sales dropped by 1.7%, the biggest fall in this figure for 20 years. Total sales in July were 3.5% lower than the same month last year.

A breakdown showed that sales in the motor sector surged by more than 13% compared with June, but most other areas showed falls. Electrical goods sales were down more than 7% and department store sales dropped 3.5%. Furniture and lighting recorded a 3% fall, while bar sales were down 1.1%.

The value of sales, which takes prices into account, increased by 1.8% in the month and fell by 0.5% over the year.