Consumers paused for breath before the Christmas rush with new research showing a slowdown in the growth of retail sales in October. The figures from the Central Statistics Office (CSO) also confirm the recovery in bar sales since April.
As the spending boom continues, the CSO said that sales rose 4.3 per cent by volume in the year to October, but were 1.5 per cent down on September. Sales were 6.3 per cent ahead year-on-year by value, though again, 1.5 per cent weaker than the previous month.
Analysts said such rates of growth were still impressive, especially when motor sales were stripped out of the figures. Motors aside, the volume of sales rose 4.9 per cent and the value rose 5.7 per cent.
"The slowdown in October may be attributed to the spike in energy prices in the month as the hurricane-induced surge was passed through to the end user," said Dermot O'Leary, chief economist at Goodbody Stockbrokers.
He added that a particular area of retail sales strength this year was on the high street and noted that sales of clothing and textiles were up 8.9 per cent while footwear and leather sales were up 11.5 per cent.
"These trends are encouraging as they illustrate that the reluctance to spend, which was a feature in 2004 in particular, is finally eroding," said Mr O'Leary.
Economist Robbie Kelleher at Davy Stockbrokers noted that bar sales had picked up steadily. "Solid monthly growth has fed through to the year-on-year comparisons . . . In the April-October period, sales volume rose 1.7 per cent year on year."
