The economy made a strong start in the third quarter, according to data released by the Central Statistics Office (CSO). This points to a stronger growth performance of the economy in the second quarter of this year, say commentators.
Retail sales data for July, published yesterday by the CSO, show that consumers bought 5 per cent more goods than in July 2004.
The nominal value of retail sales rose by 6.4 per cent year-on-year in July, while the actual volume of goods sold rose by 4.9 per cent.
Retail sales performance was even stronger when excluding the impact of motor sales, which have registered weakness in recent months.
Compared with June, retail sales volumes were up 0.3 per cent in July.
Annual growth remained particularly strong for clothing and textile products, pharmaceutical, medical and cosmetic products, footwear products, and hardware paints and glass.
But sales declined for furniture and lighting, electrical goods.
Analysts said the latest data were a positive sign for growth in 2005.
"We forecast that GNP growth may even reach 5 per cent, about a percentage point better than in the first quarter," said Rossa White of Davy Stockbrokers.
Goodbody Stockbrokers economist Philip O'Donoghue said: "We expect to see sustained healthy demand from consumers, although a further sharp rise in oil prices could depress confidence somewhat in the months ahead."
The CSO will release data on economic growth in October.
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