RETAIL SALES continued to decline in September, data from the Central Statistics Office showed yesterday,

The volume of goods sold fell 0.8 per cent compared with the previous month and on an annual basis sales were 3.9 per cent lower.

The retail sector has been hard hit by falling consumer spending and weak domestic demand with people saving and paying off debt.

Excluding the volatile motor trade, volume declined by 0.2 per cent in September compared with August and fell by 3.4 per cent compared with September 2010.

On a monthly basis, the hardest hit sectors were furniture and lighting where sales were down by 4.2 per cent and the motor trade, which declined by 3.4 per cent as the scrappage scheme ended.

Sales of food and drink also fell, losing 2.8 per cent compared with the previous month. Sales of electrical goods rose by 2.7 per cent during the month. The value of retail sales was also lower in September, falling by 0.6 per cent. On a yearly basis, that figure rose to a decline of 3.3 per cent.

“Overall, it looks highly likely that consumer spending will have acted as a drag on overall economic growth in the third quarter,” said Ulster Bank economists.