Retail sales increase as consumers enjoy real wage hike

Sales volumes rise just 1.1% over 12 months once volatile car sales are stripped out of the figures

On an annual basis, sales volumes were 3 per cent higher
On an annual basis, sales volumes were 3 per cent higher

The volume of retail sales rose by 1.1 per cent in April as consumers spent more in department stores, on books and newspapers, and on furniture.

On an annual basis, sales volumes were 3 per cent higher, the latest figures from the Central Statistics Office (CSO) show. However, when volatile car sales are excluded, the volume of retail sales fell by 0.1 per cent in the month and increased by just 1.1 per cent in the year.

The domestic Irish economy is expected to grow at 2-3 per cent this year primarily on back of an increase in real wages (with nominal wages outstripping inflation) and an associated increase in consumer spending.

The CSO figures showed the largest monthly volume increases in April were recorded in department stores (+6.4 per cent), books, newspapers and stationery (+2 per cent), furniture and lighting (+1.5 per cent), food, beverages and tobacco (+1.3 per cent) and bars (+0.3 per cent).

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The largest monthly volume decreases were recorded in clothing, footwear and textiles (-1.4 per cent), other retail sales (-1.1 per cent), and electrical goods (-1.1 per cent).

The CSO said the proportion of retail sales transacted online was 5 per cent in April.

However these figures only cover Irish-registered retailers and exclude transactions on Amazon, the biggest online retailer.

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Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times