Consumer spending has remained robust in Ireland following the September 11th attacks on the US, according to the latest economic data. But the manufacturing sector remained under pressure as production continued to slow.

The emergence of "mattress money" in the run-up to the euro and payouts to Eircom shareholders after the company's takeover helped bolster retail sales in November, economists said.

Data released by the Central Statistics Office (CSO) showed the value of retail sales in November was 0.7 per cent above October's levels and 5.4 per cent higher than a year earlier.

If the motor trade, whose sales last year fell short of the bumper levels recorded in 2000, is excluded, retail sales posted an annual increase of 7.7 per cent. Measured on a volume basis, sales were up by 3.5 per cent year-on-year.

Mr Austin Hughes, economist at IIB Bank, said the figures suggested that "consumer sentiment here, as evidenced by spending patterns, was not significantly dented by the pervasive gloom about economic prospects".

However, he cautioned that consumer spending might fall back in the months ahead, particularly as the increase in VAT, announced on Budget Day, takes effect and as the deadline for setting up Special Savings Investment Accounts (SSIAs) approaches.

By contrast to the retail sales data, industrial production continued the downward trend which has emerged in recent months. It fell by 2.9 per cent in the three months from September to November compared with the preceding three months.

In November, the year-on-year drop in production was 6.3 per cent, greater than the fall of 4.2 per cent seen in October.

Mr Oliver Mangan, economist with AIB Group Treasury, said the production figures did not augur well for the export performance in the final quarter of the year.