Slight rise in bar sales stems declining trend

Bar sales rose slightly in October, stemming a decline that took hold in the wake of the implementation of the smoking ban in March.

Figures released by the Central Statistics Office (CSO) yesterday show that bar sales were 0.6 per cent higher in September than in August.

The numbers also point to a levelling off in annual declines, with pub sales down 5.7 per cent in October when compared to the same month of 2003. A larger drop was recorded in September.

Publicans could be forgiven for taking little comfort from the trend however, with pub sales still down by 7.4 per cent since March in volume terms.

The value of sales has decreased by 5.4 per cent over the same period, despite evidence of price increases.

Wider retail sales data published by the CSO yesterday point to sluggish consumer spending, with the volume of sales falling back for the fifth month this year.

The CSO said the volume of sales had declined by 1.8 per cent in October when compared to September. Sales were a touch higher on an annual basis, climbing by 1.2 per cent compared to October 2003.

The annual increase was considerably higher at 2.9 per cent when car sales were excluded.

Mr Eugene Kiernan, head of asset management at Irish Life Investment Managers, said the numbers pointed to a "fairly grudging spend" on the part of Irish consumers. He pointed out, however, that sales volumes, which strip out price effects, have been creeping up steadily over the past few months.

He suggested that the recent Budget may combine with improved economic sentiment and good jobs news to help "spur the consumer to a better Christmas".

Economists at Davy Stockbrokers were reluctant to place too much significance on monthly fluctuations in the index.

Looking at general trends, however, they judge that consumer spending, which is two-thirds drawn from retail sales, has grown by 3 per cent over the first nine months of the year.