Dearer oil dents spending in shops

RETAIL sales declined in July on the back of spiralling oil prices denting consumer spending power, according to figures from the Central Statistics Office (CSO).

The CSO said sales in shops fell 0.9% in volume terms during the month but were still 6.2% higher than a year earlier. But overall sales were 0.3% ahead month-on-month when sales of new cars were taken into account.

“There are now clear signs that high energy prices are beginning to take their toll,” said Alan McQuaid, chief economist at Bloxham Stockbrokers. Job cuts “may also be contributing to the weakening in consumer confidence,” he said.