The decline in consumer spending, in evidence since May, continued in July, latest figures show. The latest figures show that the value and volume of core retail sales fell when compared to their June.
The volume of non-motor retail sales – which excludes price effects - decreased by a full 1 per cent month on month. This was the largest decline since August 2009. The value of sales fell by 0.6 per cent on June.
The recovery in retail sales which occurred in the first months of the year has been reversed, with consumer spendind falling back close to the low point registered at turn of the year.
The CSO numbers show that 10 of 13 retail sub-sectors experienced a weakening of sales--in both value and volume--in July when compared to June.
Retail Ireland, the IBEC group that represents the Irish retail sector, described the figures as “very disappointing”.
“The underlying trend of stabilisation and recovery in retail sales that was emerging earlier this year seems to be stalling. This underlines the fragile state of consumer spending and the retail sector generally” Retail Ireland’s Turlough Denihan said.
He also pointed out that while the cash value of core retail sales is now over 20 per cent less than before the start of the recession, the cost of running a retail business has not fallen.
The figures suggest that the Irish consumer is “running out of steam”, according to Bloxham’s Alan Mc Quaid.
“The bottom line is that the labour market remains very weak, as reflected in the further pick up in the Live Register in August, and the unemployment rate rising to 13.8 per cent,” he said. “Until the labour market stabilises and consumers become more confident about job prospects then spending will remain subdued.”