Consumer confidence flagged in October, with retail sales dipping from the previous month, although the year-on-year figure was up, according to the Central Statistics Office (CSO).
The value of sales, taking into account the price of goods, fell by 1.3 per cent since September, despite rising 2.9 per cent over the year.
A detailed breakdown of July to September sales shows the strongest growth in demand during the third quarter was for electrical goods (up 4.3 per cent) while sales of books, newspapers and stationery fared worst, falling 6 per cent.
Analysts said the results were disappointing, but they noted the upward trend for the year had continued.
Mr Jim Power, chief economist at Friends First, attributed the slippage to a fall-off in demand for new cars .
"The main weakness in overall sales over the past year has been in car sales and this is consistent with real and anecdotal evidence from the motor trade all year," he said.
"A car represents a big ticket item, the purchase of which will be invariably postponed once times become a bit more uncertain as they have been over the past year."
Despite reports of a relatively quiet pre-Christmas on the high street, retail sales are set to rise by around 2.2 per cent by the end of 2003, according to Mr Power.
And, with the global economic recovery predicted to gather pace in 2004, consumer sales growth was likely to hit 3 per cent over the next 12 months, he added.
Meanwhile, inflation in the euro zone rose to 2.2 per cent in November from 2 per cent in October, according to Eurostat, the European Union statistics office.
Higher food and tobacco prices helped drive the increase, it said. Energy prices had a slight downward impact along with a drop in the cost of package holidays.
Inflation throughout the euro zone continues to vary widely, with the Republic of Ireland, Spain and Italy recording the highest annual rates of 3.3 per cent, 2.9 per cent and 2.8 per cent, respectively.
The lowest rates were seen in Finland (1.2 per cent) and Germany and Austria (1.3 per cent each).
