Figures from the Central Statistics Office show a pick-up in consumer spending in December, with the volume of retail sales up 3% compared with December 2010.

This was the biggest annual increase since January. Sales were also up 2.1% compared with November.

The CSO figures are adjusted to take seasonal factors, such as Christmas shopping, into account, but economists had been expecting a sales boost last month due to consumers bringing forward some buys ahead of a VAT rise in January.

The CSO figures also show that sales excluding the motor sector, which are closely watched by economists, were up 0.6% over the year, the first such increase since October 2010.

A breakdown of the figures showed that sales at department stores jumped by 8.1% from November, while bar sales were up 2.7%.

Sales in the motor sector - which also includes services and parts as well as car sales - jumped by 26.3% during December, though this is from a low level - meaning that even very small increases in volume can lead to big percentage changes.

The value of retail sales, which takes prices into account, rose by 2.9% in the month and 3.4% over the year.