August was a good month for the retail sector in Bermuda, with shops reporting a turnover of $50.8 million.

After adjusting for the rate of inflation, the volume of retail sales rose by 3.8 percent on the same period last year, according to the monthly retail sales index report produced by the government.

As the demand for cars on the Island continues unabated, the increase in sales in cars and motorcycles and at service stations rose by 15.5 percent and only dealers with a low inventory saw a decline in sales. The sale of petrol went up moderately in this sector.

Food stores posted a 5.2 percent gain, while liquor sales went up marginally by 1.2 percent.

In the general stores category, aggregate sales went up by 5.4 percent.

Hardware stores continued to report healthy sales attributing their good fortune to the boom in the construction industry.

There was a strong demand for office furniture and special promotions boosted the sales of home furnishings, but the sales of household appliances fell.

All the department stores and small specialty shops catering both to locals and tourist reported a drop in aggregate sales.

Sales in pharmaceuticals were up on the same period last year.

Spending by residents returning from overseas visits increased 7.6 percent to $3.67 million in the month of August compared to the same month in 1998.

Also according to the Quarterly Bulletin of Statistics, visitor arrivals in the second quarter fell by 1.4 percent year over year.

There were 120,563 visitors to the Island compared to 122,271 in the second quarter of 1998. The largest absolute decline of 1,418 air visitors came from passengers from the United States.

Spending by air visitors of accommodation, food, entertainment and other tourist related goods increased by 2.2 percent to just over $151 million.

The number of cruise arrivals to the Island rose to 75,131 passengers, an increase of 3.9 percent or 2,855 more than the same period last year. The spending of cruise ship visitors was estimated at $17.8 million.

The level of residents spending overseas stayed roughly the same, with declared purchases worth $7.2 million. The buying abroad of CDs, tapes and records increased 32.6 percent and sales of electronic and photographic equipment rose 27.9 percent.

The total value of construction projects put in place by the government and private developers was estimated at $36.1 million for the quarter.

Inflation up; Page 31 BUSINESS BUC