There was good news for retailers during the month of January this year after stores reported a 5 percent increase in sales, according to figures released yesterday.

From building and hardware, bikes to cars, alcohol, furniture and appliances, clothes and even overseas spending, Bermudians and residents spent more during January 2004 on a whole gamut of goods than they had a year earlier. The retail sales index rose by 4.9 percent, after inflation, and residents spent an estimated $40.5 million, $3 million more than during the same period a year earlier.

Before factoring in inflation (3 percent in January), sales were up 8 percent year over year, according to the Retail Sales Index, released by the Department of Statistics yesterday.

Within the retail sector motor vehicle dealers, clothes stores and building material and hardware suppliers all saw growth of over 10 percent compared to the same period in 2003.

And overseas spending took a huge leap ? rising 39.2 percent from $2.83 million to $3.94 million with the number of passengers that declared purchases during January rising by over 40 percent, the Government release said. "Despite unfavourable weather conditions for construction activity during the month of January 2004, gross revenue flows for building and hardware retail outlets reported a strong increase of 10.8 percent," said the report.

The gross receipts from food stores rose by 2.8 percent, which was attributed to an extra Saturday for shopping during the month of January.

Liquor stores sales were up 6.8 percent while service stations were one of the only sectors to see a fall off in sales by 1.5 percent, despite a 4 percent increase in the cost of fuel for motor vehicles.

The value of sales in the "all other store type" category increased by 8.3 percent in January, with a rise in consumer demand for furniture and home furnishings increasing sharply from the same period in 2003.

Sales of appliances and electronics rose by 10.0 percent and demand for pharmaceutical and personal care products rose by 5.4 percent.

However purchases of marine supplies decreased during the month and tourist related sales remained weak, dropping by 2.2 percent below the levels reached in 2003. Increases in advertising, higher stock levels and other promotional activities saw this sector surge forward 19.7 percent in gross revenue sales.

And high levels of inventory and post-Christmas sales were given as reasons for a boost in consumer spending on clothes and accessories, and sales rose by 12.3 percent compared to a year earlier.