New figures from the Central Statistics Office show that the volume of retail sales fell by 1.1% in November compared to the previous month. The fall was the first in five months.
Volumes were 0.5% lower in November on an annual basis having posted their largest growth this year in October when the index climbed 3%.
Today's figures show that when car sales are excluded, the volume of retail sales fell by 1% compared to October and by 0.3% on a yearly basis.
During November, sales of electrical goods slumped almost 18% while fuel sales were down 3.2%. But sales in bars were up 3.2%, while furniture and lighting sales rose 2.7% and department store sales increased by 2.4%.
The CSO also said that the value of retail sales fell by 1.2% in November from October, while there was an annual decrease of 0.2%.
Retail Excellence Ireland said that it was not surprised with the decrease in the volume and value of retail sales in November 2012.
''The main factor contributing to this decrease was the scheduling of the budget in December last year. The kite flying for Budget 2013 did not help retail sales or consumer sentiment and caused many consumers to postpone their spend,'' commented its chief executive David Fitzsimons.
Impact of analogue tv switch-off seen in CSO stats
NCB economist Philip O'Sullivan said that today's figures show the impact of the switch-off of analogue terrestrial television in October which distorted the headline numbers for a second successive month.
''October's reading was up 1.7% month on month, buoyed by a 24% month on month jump in sales of electrical goods'as households prepared for the digital switchover. In November, sales in that segment declined by 18% in volume terms as this effect unwound,'' he pointed out.
''We expect to see a stronger retail sales performance in December, helped by favourable base effects and encouraging comments from retailers about the key Christmas sales period,'' he added.
Merrion economist Alan McQuaid that although the overall retail sales figures for November were weaker than expected, there was always the feeling that there would be a lull in spending ahead of the December rush for the Christmas festive season.
''The indications from retailers are that last month saw the strongest Christmas spending spree in five years. All in all, it now looks the fall in personal expenditure in goods and services for 2012 as a whole won’t be as weak as originally thought, which will increase the chances of GDP growth coming in at 1% or above for the second year running,'' he said.
