Irish retails sales continue strong growth

Irish retail sales data for October, released on Friday by the Central Statistics Office (CSO), showed ongoing strong growth on an annual basis.

The CSO figures showed retail sales in October grew 6.9 percent year-on-year and 3.5 percent year-on-year in volume and value terms respectively.

October's figures mean headline retail sales have posted consistent growth in both value and volume terms on an annual basis for two years now, according to Investec Ireland chief economist Philip O'Sullivan.

Investec is a leading international, specialist-banking group with headquarters in Johannesburg, South Africa.

"This is not a surprise, as the period has seen a step-change in underlying economic conditions in Ireland," O'Sullivan said.

"Once again, we see that while the growth in retail sales is broad-based, the components that are enjoying the strongest momentum are to be found in the consumer discretionary segment as confidence has returned," he said.

Meanwhile, Alan McQuaid, chief economist with the Dublin-headquartered Merrion Stockbrokers, said consumer confidence has hit a nine-year high this year.

This is now being reflected in stronger retail spending, boosted by increased disposable income through tax cuts, McQuaid said.

Low deposit interest rates and falling prices are also encouraging consumers to spend rather than save, with personal consumption set to have its best year in 2015 since the financial crisis, he said.

"Indeed, following the recent tax reductions announced in Budget 2016 we think that next year will see an even better performance and the biggest rise in personal spending since the Celtic Tiger era," McQuaid said. Enditem