Retail sales grew 5 per cent by volume in March compared to the same month last year, according to figures from the Central Statistics Office.

The month on month rise was 4.1 per cent while the annual increase, excluding motor sales, was 3.6 per cent.

Sales were up 5.6 per cent by value in the same month compared to March 2003 and by 4.5 per cent from February.

Stripping out motor sales, the annual increase is 4 per cent and the monthly one 1.7 per cent.

The largest increase in the volume of sales for the three months to the end of February was in the "other retail" category - excluding electricals, groceries, cars and stationery - which grew 11.2 per cent, an analysis of the data shows.

The sharpest sales decrease for the same period was in pharmaceuticals, medicals and cosmetics, down 9.5 per cent.

Commentators cautioned against reading too much into the month on month performance.

"This index is incredibly volatile and while the monthly change is undoubtedly positive it is unwise to posit a trend from one month's data," said Mr Robbie Kelleher of Davy Stockbrokers.

The volume index for March was 106.3 compared to 101.2 for the same month 2003. The value index was 113.7 for March from 107.7 from last year.

Bar sales were down a point by volume year on year in February , while books, stationery and newspapers fell 4.3 per cent.

Textiles and clothing climbed 6.8 per cent

Furniture and lighting jumped 3.6 per cent and footwear and leather by 2.7 per cent. Food beverage and tobacco showed a 1.6 per cent improvement.