Spending hits yet another record high

Spending in shops, pubs and garages has hit another record high, underpinning economic growth which is likely to exceed the most…

Spending in shops, pubs and garages has hit another record high, underpinning economic growth which is likely to exceed the most optimistic forecasts for the year.

The value of retail sales was up an unprecedented 21.6 per cent in April from a year earlier, according to the Central Statistics Office.

The findings, which follow a warning this week from the Central Bank that the economy is showing increasing signs of overheating, are likely to be confirmed by exceptionally strong tax receipts when the Exchequer returns for the first six months are released next week.

A breakdown of April's figures will not be released until next month but analysis of the statistics for the three months to the end of March shows consumers shopped for clothing, cosmetics and electrical goods as never before.

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Sales in department stores were up 13.4 per cent in value terms; textile and clothing sales were up 11.4 per cent and pharmaceutical, medical and cosmetic items were up 18.7 per cent. Electrical good sales were up 8.3 per cent.

In contrast, food, drink and tobacco sales and furniture and lighting only rose by 2.5 per cent and 1.9 per cent, respectively.

Motor sales also rose at an incredible 30.5 per cent in the 12 months to the end of March.

According to Mr Austin Hughes, economist at Irish Intercontinental Bank, the figures indicate the economy is building further momentum.

"This has been partly fuelled by April's tax reductions. Department stores must have been almost stripped, and clothing and electrical goods have also been selling extremely strongly, pointing to a real feel-good factor."