Retail sales volumes 7.3% lower in October

Figures from the Central Statistics Office (CSO) this morning show that retail sales volumes were 7.3 per cent lower in October than in the same month of last year.

This annual decline is the largest volume fall in retail sales since February 1984. In the month the volume of retail sales dropped 0.6 per cent.

Retail sales have declined in eight of the last nine months with only September bucking the trend, with an increase in car sales that month behind that rise.

If car sales are excluded in October the annual decrease was 6.2 per cent and the monthly change was 0.6 per cent.

Dr Ronnie O'Toole, chief economist at National Irish Bank, said the data show households are saving more as the labour market deteriorates. He noted that the live register grew by a seasonally adjusted 16,000 in October.

He said while the drop in last week's inflation rate reflected recent European Central Bank rate cuts "underlying 'core' inflation came to an abrupt halt in early summer".

He said sellers of furniture and household equipment have had no average price increases over the six months to the end of September.

Dr O'Toole said although food prices are up 4.8 per cent over the last 12 months "only 0.4 per cent of this rise occurred over the last 6 months".