June retail spending slumps
Retail sales performed at their worst level in June since September of last year - according to statistics released by Government on Friday - while overseas spending during the month rose dramatically.
June's retail sales totalled $46.4 million, 0.6 percent lower than in June 2001. Accounting for the 2.3 percent inflation rate, the real rate of decline was 2.9 percent.
Overseas spending in June rose 16.5 percent year-over-year to $2.89 million (without accounting for inflation), although that figure only includes what people declare when they return from trips overseas, and not mail order or Internet purchases.
The statistics suggest that May's figures, which showed that retail sales volume was up a modest 0.5 percent and overseas spending was 5.1 percent lower relative to May 2001, were an anomaly rather than the beginning of a turnaround in the sector.
Retail sales have declined for 14 of the past 18 months for which statistics have been collected. None of the months during which sales improved were consecutive.
In the most recent report, results from the seven sectors were varied, although most reported an overall decline.
Part of that can be explained by the fact that there was one less shopping day this past June than last June - 24 shopping days instead of 25 - although the number of Saturdays in each month was the same.
Motor vehicle dealers reported the strongest fall in sales. Most dealers attributed the 12.4 percent decline in their sales to lower inventory levels because of shipping delays, although some actually had more inventory this June compared to last and their performance was buoyed as a result.
Furniture stores, which for the last few months have reported growing sales, said sales dipped in June.
More than half of the clothing stores which report figures to government sold less this past June than in June 2001, in part because they held less inventory. The sector also suffered because of retail closures.
Spending on boats and "tourist novelties" also dropped during the month, although the Statistics Department did not say by how much.
