The level of consumer spending was higher in September than a year previously and continues to outstrip average growth across the EU, according to the Central Statistics Office (CSO).

The latest data from the CSO shows that when adjusted for price changes, the level of retail sales in September was 5 per cent higher than a year previously.

But the level of sales in September was lower than in the previous month. When adjusted for seasonal factors, overall retail sales were 0.5 per cent lower than in August. Excluding the motor trades categories, where growth was more modest, sales rose by 6 per cent year-on-year.

Among other categories, sales growth was particularly strong in department stores, with the pharmaceutical, footwear and leather and hardware sectors seeing annual volume growth of between 12 and 13 per cent.

Bar sales also rose by 3 per cent annually and 2.5 per cent in the month when seasonally adjusted. But September sales were down on last year for the furniture and lighting, and electrical goods sectors.

Retail sales growth was significantly stronger in the Republic than in the euro zone. In the month of August, for which the latest comparative data is available, retail sales volumes rose by 5.2 per cent in the Republic compared with 1.4 per cent in the euro zone and 1.9 per cent for the EU as a whole

Economist Dermot O'Leary of Goodbody Stockbrokers welcomed the latest figures.

"Irish consumer spending accelerated further in the third quarter of the year, and continues to propel the economy forward. Despite a dip in official consumer confidence readings in September, the improvement in retail sales shows that Irish consumers seem to have dealt with the shock of increased energy prices remarkably well," said Mr O'Leary.

An IIB Bank and ESRI survey of consumer sentiment was published last month showing a sharp downturn in sentiment. The fall was attributed to rising energy costs and the impact of the 'Rip-off Ireland' television series broadcast in the summer.