Ireland's unemployment rate dropped to a three-year low as retail sales jumped to a three-year high, giving a rosier outlook on the country’s economic prospects.

Seasonally adjusted unemployment in the second quarter was 13.7%, down slightly from a revised 13.8% in the first three months, the Central Statistics Office said.

Thursday's data suggest that the economy, which has contracted for three quarters, is turning the corner and modest growth can be expected for the full year.