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Retail sales edge higher in September on a monthly basis

Retail sales edge 0.1% higher in September from August
Retail sales edge 0.1% higher in September from August

New figures from the Central Statistics Office show that retail sales rose by a weaker than expected 0.1% in September on a monthly basis.

Retail sales increased by 5.9% in September compared to the same time last year.

The CSO said that when car sales are excluded, retail sales fell by 0.6% in September from August, while they were up 3.1% on an annual basis.

In the first nine months of 2014, retail sales are 6.7% higher on average than the same time last year. 

Today's figures show the sectors which saw the biggest increase in monthly sales included the hardware, paints and glass sector, with sales there up 4.9%. 

Fuel sales increased by 3.3%, while other retail sales - which includes the likes of home heating oil and sales in specialised stores such as jewellers and toy shops - jumped 14.7%.

But furniture and lighting sales were down 3.7%, while books, newspapers and stationary sales fell by 2.5%. Bar sales were also 2.3% lower in September.

Commenting on today's figures, Investec economist Philip O'Sullivan said they serve as a further reminder of how the Irish consumer is making a comeback.

Mr O'Sullivan noted that headline retail sales have now posted 11 successive months of growth on a yearly basis in both value and volume terms. 

"With employment on the rise, signs of upward pressure on earnings in both the private and public sectors, the Government having recently ended its austerity drive and consumer confidence at multi-year highs, we remain optimistic on the outlook for consumer spending in Ireland," the economist added.

Merrion economist Alan McQuaid said that while consumer spending remains erratic on a monthly basis, it is well up on the same time last year, which is very encouraging. 

"There have been clear signs of stronger personal expenditure in 2014, particularly in relation to new cars, concert tickets and online internet shopping. Although there is still a general air of caution among consumers, there seems to be a view that the worst is over following the downturn of recent years," Mr McQuaid added.

Buoyed by an improving labour market, the economist predicted that consumer spending will this year for the first time since 2010 make a positive contribution to GDP/GNP growth, with an increase of around 1.5% forecast.