The combined impact of the unexpected mid-July electricity blackout and the closure of one of Bermuda?s major department stores resulted in varying spending levels across all sectors of the retail industry during the third quarter.

While a modest increase was reported in consumer spending during the third quarter of 2005 as the quarterly index of retail sales rose 5.9 percent over the third quarter of 2004.

According to the quarterly bulletin of statistics issued by Government this week, this was a much slower pace of growth when compared to the 11.5 percent increase reported in the second quarter of this year.

The gross turnover in the retail sector was estimated at $165 million and accounted for nearly $9.2 million more in sales activity than the $155.8 million recorded in the third quarter of 2004. All sectors in the index reported higher gains during the quarter with the exception of the apparel and building and materials sectors which registered sales declines of 17.9 percent and 5.3 percent, respectively.

Sales at motor vehicle dealerships continued the upward momentum experienced in the previous quarter, reporting double-digit sales of 18.5 percent. Higher gains in sales revenue were due largely to increased stock levels targeting newer lines of larger cars.

Food stores reported gains of 9.5 percent during the same period and stronger sales of this magnitude for the food sector were last recorded in the second quarter of 2004.

However, gross receipts for food stores were boosted in July primarily by panic-style buying, as consumers raced to grocery stores to stockpile for a possible prolonged power outage.

Construction-related sales activity weakened during the third quarter of 2005, down 5.3 percent year-over-year. Sales in this sector have experienced a significant turnaround from the previous quarter when robust double-digit gains were reported.

Gross revenue flows for apparel stores were hit hard during the third quarter of 2005, by both the unforeseen electricity blackout and the closure of Trimingham?s.

Sales at apparel outlets plummeted 17.9 percent, falling to levels not seen in a third quarter sales reporting period since 1996.

Meanwhile escalating fuel costs drove double-digit gains in sales revenue at service stations during the third quarter.

Much of the upswing in gasoline sales was due primarily to the 13.6 percent increase in the average cost of fuel.

Liquor sales and all other stores also reported double-digit gains in sales revenue of 13 percent and 15 percent respectively.