The retail sector is showing signs of a bounce-back, after posting its best performance since before the recession in the third quarter of this year.

Retail Excellence Ireland says sales in the three months to the end of September across 4,000 stores in Ireland topped €3.3bn.

That figure is 5.5 percent up on the same period last year and the best quarterly performance since early 2007.

The hot beverage sector of the market saw the biggest increase.

Chief executive of Retail Excellence Ireland, David Fitzsimons, says most sales categories are enjoying renewed growth.

"Hot beverage sales are up over 13%, which is a great indicator of footfall and general consumer activity" he told Newstalk Breakfast.

"we're delighted that home categories are up - they're up very well in double digits - a lot to do with the home renovation scheme and a bit of liquidity back in the home market".

"Obviously that sector was incredibly harshly hit over the last eight years" he added.

But he says it is not all good news though.