Irish Economy: The volume of retail sales (i.e.
excluding price effects) increased by 8.2% in July 2014 when compared with June
2014 and there was an increase of 8.6% in the annual figure with the
introduction of new 142 car registration plates triggering the surge. If Motor
Trades are excluded, there was a dip of 0.7% in the volume of retail
sales in July 2014 when compared with June 2014 and there was an increase of
3.1% in the annual figure.
The CSO said that sectors with the largest month
on month volume increases were Motor Trades (+36.1%), Books, Newspapers and
Stationery (+4.3%) and Electrical Goods (+1.5%). The sectors with the largest
monthly falls were Furniture and Lighting (-10.7%), Fuel (-8.8%) and Other
Retail Sales (-6.4%).
There was an increase of 5.5% in the value of
retail sales in July 2014 when compared with June 2014 and there was an annual
increase of 5.9% when compared with July 2013.
If Motor Trades are excluded,
there was a monthly decrease of 0.8% in the value of retail sales and an annual
increase of only 1.0%.
economist at Davy, commented -- "As
expected, retail sales surged in July on the back of the introduction of the
'142' number plates. A 36.1% rise in motor sales (+32.1% yoy) pushed retail
sales up by 8.2% over the month and 8.6% over the year. The more relevant trend
in today's data is the strength of underlying sales given that this series
provides the best steer for consumer spending. Retail sales excluding motor
sales were down 0.7% on June but up 3.1% over the year, down from a 4.2% yoy
rise in June.
Other sectors performing well in the year to July were electrical goods (+32%
yoy), furniture and lighting (+13.3%), clothing and footwear (+5.2%), department
stores (+3.8%) and non-specialised stores (+3.1%), which include supermarkets.
In contrast, bar sales (-2.3%), books, newspapers and stationery (-4%) and
pharmaceutical and cosmetics (-2.5%) have performed poorest.
Overall, today’s data provide further positive evidence that consumer spending
will contribute to GDP growth this year. We expect a 1.5% rise in consumer
spending this year, accelerating to 1.9% in 2015."