Irish retail sales fall fastest in EU

Retail sales in the Republic slipped at a faster rate than in any other EU member-state in October, according to new figures from statistical agency Eurostat.

The volume of retail trade in the Republic fell by 1.8 per cent between September and October, a rate more than three times higher than the next most substantial decline of 0.5 per cent, which was recorded in Germany.

The German economy is in the midst of a lengthy downturn and barely displayed any growth last year. Consumer sentiment is particularly depressed in the EU's largest economy.

Annual figures reinforce a picture of particular weakness in Germany, where retail trade in October was 1.3 per cent weaker than in the same month of 2001.

Portugal was the only other EU member-state to report a monthly contraction in October, with retail trade volumes declining by 0.4 per cent.

The most substantial monthly rise in trade volumes was recorded in France, where sales grew by 1.6 per cent. Austrian retail sales were also buoyant, expanding by 1.3 per cent.

The average monthly growth recorded in the euro zone was 0.7 per cent.

The highest annual growth rate in the euro zone was noted in Spain, where sales volume increased by 5.1 per cent on the previous year.

Sales volume was 1.5 per cent higher in the Republic on an annual basis, the fourth-lowest growth rate recorded in the euro zone. This compared to an annual expansion of 4 per cent in September.

Figures for the EU as a whole reveal that the fastest annual growth in retail sales was recorded in Sweden, Denmark and Britain, the only three EU member-states to remain outside the euro zone.

On average, euro-zone sales were 1.6 per cent higher than in October 2001.

A sectoral breakdown of the annual numbers reveals textiles, clothing and footwear to have displayed the highest annual growth of 4.7 per cent. Trade was also strong in pharmaceutical and medical goods, where sales grew by 2.6 per cent.

Household goods saw the most substantial annual decline, recording a 2.3 per cent fall in sales.