A group representing retailers has confirmed that Christmas trading this year will be down on 2012.

With the budget moved to October and positive economic signs, retailers were hoping for a busier pre-Christmas period.

The retail group Retail Excellence Ireland (REI) says "While consumers might have a little more discretionary income than this time last year, even with cash in our wallets we have become habitually frugal and discerning".

It adds that six years of cautious spending behaviour has become 'a hard habit to break'.

It says that despite positive economic signs, these did not impact on spending in the run up to Christmas.

"Instead customers remained cautious and retailers responded with significant discounts. Many retailers have suggested that the announcement by the Revenue of the 2014 residential property tax last November significantly damaged consumer sentiment and dampened Christmas spending".

It also believes that the bad weather over the last two weekends before Christmas Day also impacted negatively on footfall.

David Fitzsimons is Chief Executive of REI. He says it appears sales will be slightly down on last year.