The volume of retail sales rose by 0.9 per cent last month and were up 6.2 per cent on an annual basis, according to new figures from the Central Statistics Office (CSO).

The statistics show however that if sales of motors are excluded there was a 0.5 per cent decline in the volume of sales compared to April.

On an annual basis, the volume of retail sales - excluding volatile motor sales - were up 3.4 per cent.

The CSO also said the value of retail sales rose by 0.6 per cent on a monthly basis and were up 4.1 per cent on an annual basis.

The largest increases in sales in May were in motor sales, which rose 4.6 per cent. Sales of electrical goods were up 1.8 per cent.

The biggest monthly decreases in sales were in furniture and lighting, which declined 6.9 per cent, books, newspapers and stationary, down 3.9 per cent, and hardware, paints and glass, down 2 per cent.

Davy said the latest data suggest that the recovery in retail spending evident in the first quarter has been sustained. It said it expects retail sales volumes (exclduing motor sales) to expand by 1 per cent in the second quarter, with a 4 per cent annualised growth rate.

Business group Isme said the latest figures show that the retail sector is still struggling. It said the high cost base of retailers was acting as a break on recovery and must be reduced.

“While the consumer is still reticent to spend, every effort must be made to curtail retail costs. It is ridiculous that Government is responsible for cost increases which are stopping job creation. Retailers are some of the most significant contributors to the economy and their plight must be taken seriously,” said Isme chief executive Mark Fielding.