Retail sales slipped marginally over the Christmas period - falling 0.1 per cent by volume - supporting anecdotal evidence that many people delayed major purchases until the new year.
In value terms, sales grew by only 2 per cent during the same period, defying predictions of an upswing in consumer confidence. Inflation was running at 2 per cent over the period.
Sluggish demand for cars (down 2.4 per cent by volume) proved a drag on the retail sales index, measured by the Central Statistics Office, which stood at 112.3 by value and 103.9 by volume in December, compared with 110.1 and 104 for the same month in 2002.
Commentators said they were surprised by the results, which showed caution and prudence were increasingly the distinguishing traits of the Irish consumer.
Mr Jim Power, chief economist at Friends First, said that sluggish pre-Christmas sales were somewhat unexpected in view of the emerging recovery in the global economy. "Consumers are becoming more price conscious and are putting off big purchases until the January sales," he said.
A detailed breakdown of consumer activity in November showed the largest increase in the volume of sales was in the pharmaceutical, medical and cosmetic articles, which rose 5.7 per cent by volume.
Sales of alcohol in bars fared worst, dropping 5 per cent by volume compared with November 2002.
Mr Robbie Kelleher, head of research at Davy stockbrokers, said slack bar sales showed the public was increasingly sensitive to inflation.
He said: "Prices rose 6.4 per cent, influenced by Government excise duty hikes, leaving the value of sales at bars up just 1.2 per cent. Retail sales account for about 50 per cent of total personal consumption. We expect that personal consumption increased 1.7 per cent in volume terms for the full year."
Analysed by quarter, the retail sales figures are more positive. Fourth-quarter seasonally adjusted sales were 1.3 per cent higher than those in the third quarter - the best performance since the fourth-quarter figures of 2002.
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