September consumer spending up 6%

STRONG consumer spending figures for September have prompted NCB stockbrokers to put Arnotts on their buy list.

NCB analyst John Kelly said very strong retail sales numbers reported by the Central Statistics Office (CSO) show a 6% increase in September over August in total volume. The increase is 3.3% when cars sales are excluded.

“We won’t get the breakdown of sales for September until next month so, apart from some recovery in car sales, we don’t know exactly what drove such big monthly numbers.

“The September figures mean that in the third quarter as a whole, total sales volume rose 2.3% on the previous quarter and sales excluding cars were up 1.3%,” he said.

Mr Kelly said the September numbers reinforce the signs of acceleration in the third quarter which he says were already obvious in July and August.

The strong performance in retail sales is also very much in keeping with indications from Arnotts, Ireland’s largest department store, and Paddy Power. Arnotts is currently trading on 9.2 times 2003 earnings. Arnotts offers investors one of the purest plays to capitalise on the continued strength of the Irish economy.

“It is also set to benefit from the new LUAS line, Dublin’s new light rail network, stopping beside its main Henry Street store and the refurbishment of the Boyers store.”