Drop in car sales drive retail sales lower in August

A drop in the number of cars sold drove retail sales lower in August, Central Statistics Office (CSO) figures show.

The volume of sales fell by 1 per cent last month but was up by 3.9 per cent year on year.

Excluding volatile car sales, sales were down by 0.3 per cent in August but grew by 2.1 per cent in the year when compared with the same month of 2024.

“The monthly decline was largely driven by a drop in the motor trades sector, down 3.6 per cent in volume, following its seasonal midyear peak in July,” the CSO’s Tommy Allen said.

“However, in August 2025 this sector significantly surpassed the previous year’s performance with a 9.8 per cent annual volume increase.”

The other significant monthly volume decrease was in department stores at 4.3 per cent.

Monthly volume increases were recorded in “other retail sales” (1.1 per cent), pharmaceuticals, medical and cosmetic articles (0.3 per cent), and hardware, paints and glass (0.3 per cent).

The proportion of retail sales transacted online (from Irish registered companies) was 5.2 per cent in both August 2025 and July 2025, compared with 4.7 per cent in August 2024.

“Retail sales dipped in August as consumer confidence remains depressed due to the ongoing economic uncertainty,” Alex Deaton, junior dealer at global financial services firm Ebury, said.

“Euro area inflation expectations have edged up, and though they remain relatively contained, it suggests that further European Central Bank rate cuts are off the table for the meanwhile.

“There will be relief that Ireland, which is uniquely vulnerable to the threat of further US tariffs on the pharmaceutical industry, is set to escape the punitive 100 per cent rate which would have provided another significant economic headwind,” he said.