Car trade boosts retail figures

Retail sales increased in May, reversing a series of monthly declines, thanks to a boost in car sales, the latest CSO data show.

However, the figures suggest retail activity remains sluggish with the volume of overall sales falling by 2.1 per cent in the year to May.

The latest statistics from the CSO show the volume of retail sales, excluding price effects, rose by 1.3 per cent in May compared to the previous month.

However, if motor trades are excluded, sales fell by 0.6 per cent on a monthly basis, and by 5.1 per cent in the 12 months to May.

A breakdown of the figures shows motor trades rose by 13 per cent in the year to May. The increase can be partially attributed to the Government’s car scrappage scheme which ends tomorrow.

The figures show there were significant declines in the annual volume of sales of hardware, paint and glass (-13.9 per cent), Other Retail Sales (-10.9 per cent), Fuel (-9.9 per cent), Bar trade (-8.1 per cent).

Bloxham chief economist Alan McQuaid said the latest figures provide further evidence that a "two-speed economy is still very much in place" in Ireland at present.

“The export sector continues to do very well, helped by improved competitiveness and strong global demand,” he said.

“However, the domestic side of the economy continues to struggle, and with the scrappage scheme for cars coming to an end, the retail sector looks like it is set to remain under severe pressure in the short-term at least,” he said.

David Fitzsimons, chief executive of Retail Excellence Ireland, said the figures illustrated just how difficult trading conditions were for retailers.

Mr Fitzsimons said May was the 39th consecutive month of declining sales for the retail industry. “This simply dire retail industry performance is a clear indication of the urgent Government intervention required to reduce retail industry costs,” he added.

The figures showed the value of retail sales fell by 1.5 per cent in the 12 months to May. However, there was a month-on-month increase of 1.1 per cent in the value of sales.

If motor trades were excluded, there was an annual decrease of 3.5 per cent in the value of retail sales and a monthly decrease of 1.2 per cent.