Official figures show that consumer spending remained weak in March, with little change in the volume of retail sales.
The Central Statistics Office said the volume of sales rose by 0.1% compared with February, but this meant March sales were 1.7% lower compared with the same month last year.
Many economists prefer to watch the figure excluding motor sales, as these have been boosted over the past year by the scrappage scheme. When motor sales were stripped out, there was an increase of 0.1% in March, but an annual fall of 3.5%.
Provisional figures for the first three months of the year also show little change, with the volume of sales up just 0.6% compared with the same period last year. Figures from retail group Retail Excellence Ireland yesterday said sales levels in the first quarter of this year were down an average of 3% from a year earlier.
A breakdown of the March figures from the CSO showed that sales of hardware, paints and glass rose by 4.9% during the month, while clothes sales were up 2% and food up 1.2%. But fuel sales dropped by 2.2% and bar sales fell 1.4%.
Bar sales have now fallen by almost 10% in the past 12 months, while fuel sales are down 12.6%. Motor sales rose by 1.1% in the month, giving an annual increase of 8.7%.
The value of sales, which takes prices into account, also rose 0.1% in the month but dropped 1.2% over 12 months.
Sales figures worry business bodies
Davy economist Conall MacCoille said the small monthly rise was 'marginally positive' as higher oil prices and weak consumer confidence could have led to a drop. But he said a rise in sales in the first quarter may have been linked to a weather-related bounce after December, and a sustained recovery in consumer spending remained elusive.
Ulster Bank's Lynsey Clemenger called the figures 'a mixed bag', adding that the quarterly figures indicated renewed weakness.
Goodbody economist Juliet Tennent said underlying momentum in consumer spending remains weak. 'With persistent weakness in the labour market affecting both discretionary income and consumer confidence the retail sector is set to continue to struggle,' she added.
Business groups were more gloomy, however, with IBEC group Retail Ireland calling the figures 'a cause for concern'. Small business group ISME said the retail sector remained in a 'distressed' state, while Chambers Ireland called for action to support retail businesses.
