Retail sales rebound in September

Retail sales have risen by 1.3% in September after a fall of 1% in August, to leave them up slightly over the two-month period, according to the Ulster Bank.

This was still weaker than the average of the corresponding two months in 2006, 0.5%.

The annual rate of increase recovered from 5.2% in August to 6.8% in September.

Pat McArdle, chief executive of Ulster Bank said that in 2006, a strong first quarter was followed by two weaker quarters, with Q3 up a modest 0.2% in both 2006 and 2007.

The final quarter of 2006 was quite strong so a significant acceleration will be required if the final quarter is to match Q4, 2006, and keep the annual rate of increase at the 6.9% it averaged in the first nine months.

This looks unlikely and the rate of increase is expected to go down ending the year around the 6.5% mark.

"It appears that SSIA funds were spent in late 2006/early 2007, but the big picture is that the vast bulk of SSIA money was saved or invested, not spent," said Mr McArdle.

All but one of two eight main categories expanded in September, in contrast to August when six of them contracted.

The food, drink and tobacco category was flat in September after a 2.7% fall in August.

The motor trade is the other big category and it recovered strongly, rising by 2% in the month, more than offsetting a 0.8% fall in August.

Clothing and footwear sales fell by 5.5% in September after an 11.7% increase in August.

Household equipment was another erratic performer – it rose by 4.3%, offsetting a 3.9% fall in August.