The spending spree by Irish consumers continued last year with the value of retail sales rising by nearly 11 per cent over 1998 levels.

According to data released by the Central Statistics Office (CSO) yesterday, the 1999 figures continued the trend of exceptionally strong growth in consumer spending in recent years.

The 10.9 per cent rise recorded last year came on the back of a 9.7 per cent increase in 1998 and a 9 per cent rise in 1997.

Retail sales volume was particularly strong, expanding by 9 per cent last year, its biggest increase since the current retail sales index began in 1968.

However, the figures also showed that retail sales dipped in December from the strong levels recorded in November. But the fall was most likely reflected in many consumers holding off buying cars until 2000 so they would get a coveted millennium registration, while others held out for bargains in the January sales.

The CSO also points out that sales were particularly strong in November when they rose by 12.5 per cent year-on-year.

Although sales rose by an annual 10.2 per cent in value in December, they were down 2.5 per cent on November levels.

When measured by volume, retail sales rose by 7.1 per cent in December on an annual basis, although they were down 4 per cent on a month-on-month value basis. However, analysts do not believe the December figures suggest any cooling in the economy.

"The fall would seem a tad surprising and is not consistent with anecdotal evidence.

"I suspect it's a statistical aberration and that the overall trend is still firmly in the upwards direction," said Mr Jim Power, chief economist at Bank of Ireland Group Treasury. "I think we'd like to see the January numbers before jumping to conclusions. Two months in a row might be more than an aberration but I suspect we'll get a sharp rise in January," he said.