IBEC: Weak car sales affecting retail numbers

IBEC, today said that while growth in the retail sector is slowing as a result of the weaker economy, the plunge in car sales is a major reason behind the decline in the volume of retail sales in February.

Commenting on the most recent retail sales data from the CSO, IBEC Senior Economist Fergal O’Brien said: "While there is no doubt that retail sales activity has weakened over recent months, the headline figure for February probably exaggerates the situation faced in the high street. When cars and bars are excluded from the data, core retail sales increased by 3.3% in February and this was down slightly on the 3.8% increase in January. Sales in supermarkets and of clothing remain reasonably strong.