CSO retail index see strong growth in July boosted by motor sales 

However retail sales in some sectors have been falling including larger-than-expected 3.5% declines in categories including newspapers, books, and department stores

Ireland's Central Statistics Office reports that the volume and value of retail sales in July rose by 4.2% and 4.3% respectively year on year. Stock picture: PA

The volume and value of retail sales in Ireland during July increased by 4.2% and 4.3%, respectively, compared to last year, bolstered by a strong month for the motor trade, data from the Central Statistics Office (CSO) shows.

The latest retail sales index shows that motor sales saw the largest growth of any sector, growing by 7.7% in volume during July, which is regularly one of the sector’s busiest periods. A total of 27,148 new cars were registered in July compared to 21,904 registrations last year, figures from the Society of the Irish Motor Industry show.

If the motor trade is excluded, retail volume sales would have increased by 3.1% year-on-year, while sales value would have increased by 3.7%.

The category of “other retail sales”, which encompasses a wide range of products from games, jewellery, flowers, pet food, among many others, saw the next-highest increase in sales volume of 6.3% in July year-on-year. The value of furniture and lighting sales also increased by 5.9%.

Sectors showing annual volume declines included specialised food and drinks stores, down 2.9%, and department stores, down 2.7%.

In value terms, the CSO said that “stable movements were experienced across the majority of sectors”, but there was a larger-than-expected decline observed in the categories of books, newspapers, and stationery, as well as department stores, both down 3.5%.

The proportion of retail sales transacted online, from Irish-registered companies, was 4.9% in July.

EY Ireland partner and retail sector lead Colette Devey said that “given the ongoing global geopolitical uncertainty and the lingering impact of cost-of-living challenges on many households, it’s positive to see that retail sales volumes continue to increase, which points towards a domestic economy that is continuing to perform well”.

However, it is noticeable that the areas where the strongest increases have been observed — motor vehicles, furniture, and lighting — suggest that discretionary spending amongst particular sections of the economy may be driving the overall headline figures. 

In comparison to the retail sales index in June, motor trade volumes saw a 9.2% increase, while hardware, paints, and glass saw a 3% rise. Pharmaceuticals, medical, and cosmetic articles saw a 2.9% increase.

The largest monthly volume decreases were recorded in books, newspapers, and stationery, down 3.2%; and electrical goods, down 1.4%.