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Cars drag retail sales figures lower

Car sales - Figures down 48% year on year
Car sales - Figures down 48% year on year

Retail sales rose by 0.2% in July from the previous month, the latest figures from the Central Statistics Office show.

However, sales are down 15% in July compared to the same time last year due mainly to the increase in new motor sales in July 2008 as a result of the introduction of the new VRT system.

The CSO says that when car sales are excluded, the volume of retail sales decreased by 6.2% in July 2009 compared to July 2008. The monthly change excluding cars was a fall of 0.7%.

Breaking down the figures, they show that year on year car sales slumped 48.2%, clothing and footwear sales were down 9.4%, bar sales dropped 9.7% while household equipment fell by 17.1%.

Categories linked to the property sector continued to show big falls over the year, with furniture and lighting down 30% and hardware, paints and glass 17% lower.

The only sector showing year on year increases in sales was department stores, which saw sales inch 0.2% higher.

Stockbroker Davy said there were some positive signs in the figures, noting that, for the first time since December 2008, the decline in the value of 'core' sales was not bigger than the volume decline. 'That suggests retailers are no longer slashing prices to keep volumes stable,' said Davy.

Goodbody's Deirdre Ryan said spending trends appeared to have stabilised, and the latest numbers 'point to an improved outturn in the third quarter'. But Bloxham economist Alan McQuaid said consumer spending remained weak, and the negative trend was likely to persist for the rest of the year.