Irish shoppers continued to spend in August, boosting retail sales by more than 5 per cent on the same month last year, the latest figures show.

However, the figures, released by the Central Statistics Office (CSO) yesterday, show that consumers did not buy as much as the previous month.

The CSO said that volume index for retail sales hit 123.9 in August, compared with 117.9 during the same month in 2006.

The office said this was an increase of 5.1 per cent.

The value index jumped 5.9 per cent in August to 138.9, from 131.2 during the same month last year.

Both indices take 100 as their base and 2000 as their base year.

However, sales volumes fell 1.1 per cent from July, when they hit 125.3, to August. Similarly, the value of sales dropped 1.4 per cent from July, when they were 140.8, to August.

Bloxham Stockbrokers chief economist Alan McQuaid said yesterday's figures were weak, but it was too early to say that consumption was at the start of a sustained downturn.

Goodbody Stockbrokers' economist Deirdre Ryan said Irish consumers' spending appetites were intact but were moderating.

Ulster Bank economist Pat McArdle said a poor August was no great surprise given the negative sentiment that resulted from turmoil in the financial markets.

"It will still be a good year for retail sales, with volume growth of 6.5 per cent and goods prices up around 1 per cent."