Retail sales were up 12.6% in the month in July and were 6.3% higher in the year in volume terms as against a revised annual increase of 5.2% (+5.3%) in June.
This is according to the latest headline official retail sales data from the CSO.
The big monthly rise was mainly due to strong new car sales as the 162 registration plates came into operation.
However, excluding motor trades, retail sales were down 0.5% in the month but were 2.7% higher in the year compared with a revised annual rise of 4.8% (+4.9%) in June.
The sectors with the largest monthly volume rises in June were Motor Trades (+12.5%); Furniture and Lighting (+5.3%) and Books, Newspapers & Stationery (+2.0%).
Meanwhile, the sectors with the largest monthly decreases were Clothing, Footwear & Textiles (-2.5%); Other Retail Sales (-2.4%) and Food, Beverages & Tobacco (-0.9%).
Consumer confidence hit a 15-year high in January but has dipped since mainly on uncertainty over the “Brexit” referendum. Still, overall, spending was quite robust in the first seven months of the year, with headline sales up 7.2% year-on-year on average in volume terms.
According to Merrion Stockbrokers, "The fall-out from the “Brexit” vote and the uncertain economic implications will likely impact negatively on Irish consumer sentiment, resulting in lower personal spending. Furthermore, a sharp fall in the pound may well entice Irish shoppers to spend in Northern Ireland."
They added, "In overall terms though, increased disposable income should lead to higher personal spending in 2016, as should the strong labour market. Even allowing for a slowdown in spending in the second half of 2016, we think that headline retail sales volume growth for the year as a whole will still be in the region of 6.5-7.0%, albeit down from 8.2% in 2015."
Source: www.businessworld.ie
