Figures from a retail industry group indicate that falls in consumer spending accelerated in the second quarter of this year.
Retail Excellence Ireland said sales fell by an average of 6% in the second quarter compared with the same period a year earlier. This came after an annual drop of 3% in the first quarter. REI said June was the 40th month in a row in which sales fell..
Electrical goods and ladies' fashion recorded the biggest falls in the second quarter, down 9.5% and 8% respectively from a year earlier. REI expressed concern that sales in all categories were down compared with the second quarter of 2010.
REI chief executive David Fitzsimons said it was clear from the figures that the fall in retail sales had not yet reached the bottom.
'With further anticipated interest rate rises and the Government continuing to talk of increased charges, we don't anticipate any pick up in sentiment in the coming months,' Mr Fitzsimons said.
REI said its figures showed that while labour costs as a percentage of sales were falling for retailers, rents were remaining 'stubbornly high'.
