Retail sales stayed flat last month

Consumer spending is set to remain subdued for the rest of the year, with figures showing expectations for a flat first quarter have not been wide of the mark.

CSO data published yesterday, showed a 0.3% month-on-month increase in the volume of retail sales in February. However, on a year-on-year basis, February recorded a 0.2% fall. When vehicle sales are excluded, sales were down by 0.2% when compared to January, but up by 1% on an annualised basis.

The flat showing since the turn of the year had been expected, due to many households bringing forward their planned spending to before last December’s budget. The fourth quarter of 2012 saw a 1.1% rise in consumer spending.