Retail sales recorded their first increase in three months with August figures showing a 0.3 per cent improvement over the same month last year, according to the Retail Sales Index, which is compiled by the Department of Statistics.

But after adjusting for the annual retail sales rate of inflation, measured at 1.8 percent in August, the volume showed a decrease of 1.5 per cent.

Motor vehicle retailers were up 12.2 per cent. It was the sector with the strongest performance.

Building materials registered the largest decrease in sales with a 10 per cent decline.

The Consumer Price Index report also reflected returning residents’ declaration of overseas purchases valued at $6.6 million, 1.5 per cent higher than in August 2013.

“This contributed to a combined local and overseas spending total of $88.9 million,” stated the report.

There were 24 shopping days in August, the same as the previous year.