RETAIL SALES volumes rose by 0.5 per cent in October compared to the previous month, according to new figures from the Central Statistics Office.

The value of sales increased by 0.7 per cent in the month, with the index rising to 91.1.

Excluding the motor trade, the monthly rise in volume was just 0.1 per cent, and the value of retail sales declined by 0.1 per cent.

The data from the CSO showed monthly declines in the volume of sales across eight categories.

Compared to September, the volume of furniture and lighting sales slipped 6 per cent.

Pharmaceutical, medical and cosmetic products fell by 4.4 per cent.

Only five categories showed increases during the month.

Ulster Bank said October was a slightly better month for sales, but warned the weak labour market and the upcoming budget would weigh on spending into the new year.

Lynsey Clemenger, an economist at the bank, said that, although the rise in core retail sales last month was “modest”, consumer confidence figures indicated there was a risk of another large fall in consumer spending.

“So it is against the backdrop of deteriorating confidence that we take some encouragement from the bit of stability coming through in the October retail sales figures,” Ms Clemenger said.

On an annual basis, the volume of retail sales increased by 2 per cent in the year to October.

The growth is due entirely to sales of motor vehicles, driven by the scrappage scheme.

When the motor trade was excluded, sales fell 0.5 per cent by volume and 1.6 per cent by value.

Over the year, the motor trade saw an increase in volume of 20.4 per cent.

Clothing sales, meanwhile, rose by 7.3 per cent year on year, but only by 0.2 per cent in value.

The volume gains were partly offset by a decline in the sales in furniture and lighting, which slipped by 14.1 per cent, a 5.7 per cent fall in sales in the “other retail” category and a decrease of 5.9 per cent in bars.

The value of food, beverages and tobacco fell 2.6 per cent in the year, compared to a 5.1 per cent decline in volume.

The CSO also released final figures for September, which showed the volume of sales for the month was down 0.7 per cent compared to August.

Retail Ireland said the reality is that shops are selling less than they did a year ago.

“The Government must communicate in clear and easy to understand terms what the budget tax increases will mean for individual consumers so that they can quickly reassess their circumstances and make spending decisions,” director Torlach Denihan said.

“In view of the importance of Christmas for the retail sector and the protracted nature of the current crisis, consideration should be given to having the budget earlier in the year in 2011,” he added.