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Building boom helps push up April receipts

A rebound in hardware and building material sales helped along a nearly eight percent surge in cash register receipts for April, the Bermuda Retail Sales Index report shows.

The total value of April sales reached $50.7 million - a $5 million improvement over the same period a year ago, according to statistics in the monthly Government bulletin released on Friday.

Although the value of sales was 11 percent higher, adjustment for inflation - measured at 3.1 percent during April - reduced the actual value of sales at the till to 7.7 percent.

While building materials and household furniture, appliance and electronic suppliers experienced buoyant sales, motor vehicle sales were another large contributor to the strength of retail sales during the month.

A renewed construction boom - after three months of declining sales for this sector - was good news for building and hardware outlets with 27.2 percent greater sales recorded in April.

Stores specialising in household fixture sales also benefited from increased residential construction projects, the RSI report said.

And consumers, for the third straight month in a row, lined up for new vehicles.

A new and expanded product line up from auto dealers was said to be behind a 19 percent increase in sales for this sector, as were favourable interest rates.

The Bank of Bermuda said interest rates from December to date stood at 7.75 percent for 80-percent financed car loans while bike loans at full value are available at an interest rate of 8.75 percent.

The interest rates on offer from the Island's other banks was not available on Friday.

Sales at food stores increased 8.1 percent year on year, a development tied to there being 26 shopping days this year compared to 25 in April 2004.

A 2.8 percent in grocery stores prices moderately diminished the impact of that increase, the RSI bulletin said.

Pharmacy sales were down in the month largely because Easter sales fell in April last year but in March this year.

While petrol sales rose 14.7 percent in April this was largely attributed to an 11.9 percent increase in the price of premium gas and 11.4 percent jump in the cost of mixed gas.

Consumer spending on clothing, footwear and accessories jumped 7.1 percent, a similar improvement to gains seen in March. Prices in this sector were higher by 2.1 percent in April.

Retailers may have breathed a sigh of relief that the 7.7 percent increase in sales was accompanied by overseas purchases rising 3.9 percent to $4.83 million. In previous months this year, returning resident declarations to H.M.

Customs have tracked at a much higher rate, 9.9 percent in March, 18.4 percent in February and a 32.5 percent increase in January.