Consumers returned to shops and garages during March as retail sales volume rose, according to the latest Central Statistics Office (CSO) figures.
Retail sales volume increased by 3.6 per cent in the month compared to March 2009 and there was a monthly increase of 2.6 per cent.
However, if motor trades are excluded, the volume of retail sales fell by 1.2 per cent in March 2010 compared to March 2009 and the monthly change was +0.6 per cent.
Most sectors showed a year on year volume increases with the most significant being the motor trade, which was up 21.9 per cent.
According to the CSO, the value of retail sales fell by 1.6 per cent in March 2010 compared to March 2009, and there was a monthly increase of 2.2 per cent. If motor trades are stripped out, the annual decrease was 5.3 per cent and the monthly change was +0.7 per cent.
Provisional estimates for the first quarter of 2010 show the volume of retail sales increased 1.1 per cent year on year and the value of retail sales declined by 3.6 per cent year on year. If motor trades are excluded, the volume of retail sales decreased by 2.9 per cent year on year in the first quarter of 2010 and the value of retail sales declined by 6.9 per cent in the first quarter.
The car scrappage scheme introduced by the Government has resulted in 5,000 new car sales, according to the Society of the Irish Motor Industry. It also reports a 38 per cent rise in new car sales for the first four months of the year compared to the same period last year.
Industry group Retail Excellence Ireland said the figures provide a strong indication that like-for-like growth is likely to be reported in the second quarter.
Chief executive David Fitzsimons said: "Following a prolonged two year period of rapidly deteriorating retail sales, the industry is now experiencing more modified decline and, in fact, many operators claim the industry has reached the bottom.
"Notwithstanding the fact that this modified decline is set against very weak sales figures in 2009, the numbers are at least moving steadily in the right direction,” he said.
Retail Ireland, the Ibec group representing the Irish retail sector, today said that new CSO retail sales figures show some positive signs, but that high costs and poor sales continue to be an issue for the sector.
Retail Ireland director Torlach Denihan said: "The volume of core retail sales, excluding car, fuel and bar sales, increased somewhat in most categories . . . Unfortunately the value of sales for both March and the entire first quarter is well below the corresponding 2009 figures.
"The problem is that retailers have cut their prices, and their monthly takings are well down.However, their costs, particularly rents and rates, have not fallen. While the latest figures give grounds for hope, the sector continues to grapple with very high costs and poor sales," Mr Denihan said.
Fergal O’Brien, senior economist with business representative group Ibec, said the recession appeared to have ended in the early months of this year.
"Consumer confidence has clearly strengthened since December’s budget, and consumers are now most likely saving a lower percentage of income than at the end of last year," he said. "A substantial fall in the volume of cross-Border shopping has also helped recovery in the sector, he added.
Alan McQuaid of Bloxham said the figures were "quite positive" and an indicator things were improving on the economic front. He expressed confidence that, but for the Euro zone debt crisis, Ireland would return to positive economic growth sooner than what was assumed at the start of the year.
An Ulster Bank analyst noted 3.6 per cent is the strongest annual growth in over two years, with a major turnaround in motor trade sales, but he added the far better trend in core retailing may be more significant.
"Core sales rose by 1.1 per cent in the first quarter compared with the final quarter of last year - the first quarterly rise since the end of 2007," he said.