IBEC - Newsroom

IBEC, the group that represents Irish business, today said that the April retail sales figures indicate that the recovery in consumer spending continues.

Commenting on the data, IBEC economist Reetta Suonperä said: “Headline retail sales grew by 6.0% in the year to April, largely thanks to continuing strong car sales. The good news, however, is that the recovery in sales is becoming more broad based. Core retail sales (excluding cars, fuel and bars) increased by 1.3% in the month and annual growth accelerated to 3.9%. Many retail sectors, including electrical goods, clothing and footwear, and furniture and lighting, are now growing year-on-year, albeit coming off a very low base.

“The latest retail figures are a further indication that the more positive news on the real economy we’ve had this year, together with no tax hikes in last December’s Budget, are feeding into consumer behaviour. While we by no means foresee a return to the very high consumer spending growth experienced before the crisis, it is encouraging that people are easing up on precautionary savings, which were at a very high level in 2009.

“The recent turmoil in the euro area and the rollout of fiscal austerity measures across the region, however, pose downside risks to the recovery,” concluded Ms Suonperä.