Although consumer confidence has fallen and the gloom-merchants are having a field day, business group IBEC has said that 2007 was the strongest retail year so far in the decade.

While retail growth has slowed in recent months, the business group was at pains to reassure both members and consumers that growth would continue nonetheless.

Commenting on the CSO retail sales figures for November, IBEC Senior Economist Fergal O'Brien said: "There is no doubt that the rate of growth in retail sales has slowed significantly in recent months, but this has been off an exceptionally strong base over the past 18 months or so. Overall, we expect the retail sector to record in excess of 6 per cent growth for 2007 and last year is likely to have been the best year for the sector since 2000. The volume of retail sales grew by 6.6 per cent in the first 11 months of the year."

"Most parts of the retail sector performed strongly during 2007, with both the clothing and footwear sectors recording exceptional growth of about 14 per cent. Despite the significant slowdown in housing, sales of related goods such as furniture, electrical and DIY goods were all up by 8 per cent-9 per cent during the year, although their performance did weaken in the second half of the year. Retail sales growth of 3.9 per cent in the month of November represents a significant slowing from the high of 10 per cent at the peak of the SSIA impact in May.

"Sales, excluding cars, provide a less volatile picture, however, and growth of 5.5 per cent in November was just marginally down on the October figure. On a three month moving average basis retail sales excluding cars are growing at 6 per cent and this suggests that the sector has entered 2008 in a relatively health state."

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