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IBEC, the group that represents Irish business, today said that the latest retail sales figures from the CSO are a further sign that Ireland is exiting recession.

Commenting on the data, IBEC economist Reetta Suonperä said: “The December Budget, which brought no tax hikes, together with the stabilisation in the labour market has helped shore up consumer confidence. Consumers are feeling more certain about their future income levels. This is reflected in the consumer sentiment index and now also in the hard data.

“The headline figure shows annual growth of 3%, mainly driven by the strong rise in car sales, helped by the scrappage scheme. However, sales excluding cars and bars also showed a definitive improvement, with a monthly increase of 2.5%.

“It is notable that a number of sectors are now showing annual growth, including cars, department stores, furniture and lighting and electrical goods. Consumers are more willing to commit to big ticket purchases they may have postponed last year.

“The retail data, together with recent positive manufacturing and consumer sentiment figures, is further hard evidence that the economy is emerging out of recession,” concluded Ms Suonperä.