Overseas spending has dipped - a boost for the Buy Bermuda campaign launched in late October.

But retail sales in Bermuda fell for the second consecutive month, according to latest figures released by Government.

After adjusting for the 2.5 percent inflation rate, the volume of retail sales fell 2.6 percent year-over-year.

Gross turnover in the retail industry was put at $42.9 million for November.

Figures also show:

The sale of building materials declined 5.9 percent;

A drop in demand for motor vehicles; and

Gas station sector recorded the biggest rise in retail sales.

Figures released by the Department of Statistics on Tuesday showed levels of overseas spending were down 1.7 percent from November 2001.

Rhona Emmerson, who co-ordinated the Chamber of Commerce's Buy Bermuda campaign, said the initiative had successfully reinforced the commitment of the consumer to shop locally as their first choice.

"Retailers really threw their weight behind the campaign by providing good selection, good prices and good opportunities for savings."

November is traditionally a popular month to travel and residents returning from overseas business and vacation trips during November 2002, declared purchases of goods valued at $4.65 million, down from $4.72 million the previous year. According to the Bermuda Retail Sales Index, the gas station sector experienced the largest increase in retail sales.

However this in part reflected a rise in gasoline prices.

Gross receipts for food stores increased by 5.4% compared to the previous year's level and Liquor store receipts increased 5.2 percent during the month of November.

Mr. Guiseppe Rocher and his wife, Laquita, owners of Queen's Street Liquors, confirmed: "November is traditionally a good month for us."

In contrast, the motor vehicle sector experienced a drop in sales activity of 15.2 percent year-over-year. The demand for vehicles fell for the sixth consecutive month since June 2002.

The sale of building materials declined 5.9 percent during the month.

"This was a direct result of a slowing down in the building industry." says the release.

But professionals in the construction industry questioned this diagnosis.

A spokesperson for SAL said "We've not experienced any slowdown personally."

Victor Roberts, owner of Blumber's Crane and Steel and Bermuda Asphalt, said: "I don't see any slowdown. My line of work is steady, in fact the asphalt is on the up."

He added that a slowdown in buying did not necessarily indicate that construction levels would diminish: "Just look around the Island at all the projects that are on."