Retail sales fall as consumer caution over Brexit heightens

Retail sales fell 2.4 per cent last month amid signs Brexit worries may be denting consumer confidence.

The Economic and Social Research Institute (ESRI) warned recently that Brexit was having a direct impact on the Republic’s economy with consumers more cautious about spending than they would normally be. This despite rising wages and record employment levels.

While personal consumption remains positive, the think tank said it was lower than where it might have been.

Figures from the Central Statistics Office (CSO), published on Friday, show that while monthly numbers were down, sales in annual terms were up by 1.1 per cent in May.

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If car sales are excluded, there was an increase of 1 per cent in the volume of sales in May and an annual increase of 3.6 per cent.

The sectors with the largest monthly volume decreases in May were food, beverages and tobacco (down 5.3 per cent); and fuel (down 5.1 per cent).

On the up

On the upside, the biggest monthly increase were in bar sales (up 4.5 per cent ) and sales of electrical goods (up 2.7 per cent).

Economist Alan McQuaid said retail sales remained erratic on a monthly basis but the underlying trend was positive.

"Even with the fluctuation in consumer sentiment, overall personal spending has been positive in the past few years, boosted by the increase in the numbers employed in the country," he said. "This is despite the fact that the weakness in sterling since the June 2016 Brexit referendum has enticed some shoppers to spend in Northern Ireland, " he said.

He noted that “core” sales were 5.5 per cent higher on average year on year in the January-May period.