Retail sales were up 0.7% in the month in May and were 8.1% higher in the year in volume terms as against a revised annual increase of 5.2% (+5.1%) in April according to the latest headline official retail sales data from the CSO.
Excluding motor trades, retail sales were up 1.2% in the month and were 6.5% higher in the year compared with a revised annual rise of 3.3% (+3.6%) in April.
The sectors with the largest monthly volume increases in May were Hardware, Paints & Glass (+14.3%); Books, Newspapers & Stationery (+10.1%) and Clothing, Footwear & Textiles (+9.7%). Meanwhile, the sectors with the largest monthly falls were Electrical Goods (-1.9%); Motor Trades (-1.6%) and Food, Beverages & Tobacco (-1.2%).
The data indicates that 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 five months of the year with headline sales up 7.9% year-on-year on average in volume terms.
According to Merrion Stockbrokers, "The fall-out from the vote and the uncertain economic implications will likely impact negatively on Irish consumer confidence, 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, ultra low deposit-interest rates and increased disposable income (helped by tax-cuts in last October’s Budget) should lead to higher personal spending in 2016, as should the improving 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 be in the region of 7.0% as against 8.2% in 2015."
Source: www.businessworld.ie
