Retailers saw sales increase for the second consecutive month in January, as strong demand for general goods boosted the retail sales index.

But some of the improvement was also attributed to unusually poor sales in January, 2002 when consumers were watching their spending closely in the wake of the September 11 terrorist attacks and the collapse of world stock markets.

The Statistics Department said the value of sales in January rose 3.3 percent compared to January, 2002 while gross turnover rose $1.1 million to $36.3 million year over year.

Volume of sales increased marginally by 0.3 percent after inflation was taken into account.

Overseas purchases declared by returning residents rose 5.6 percent to $2.83 million.

the increase in sales was led by the general stores category, which soared 12.7 percent, with consumer electronics and sales of home appliances increasing 15.4 percent.

The Statistics Department said the sales in durable goods rebounded from a poor January, 2002 performance, suggesting that consumers had more confidence than they did a year earlier.

"Demand for pharmaceutical and personal care products rose 9.4 percent," the statement said, adding that stores catering to visitors experienced modest increase in sales receipts.

Other categories seeing a rise included liquor merchants (up 7.6 percent), food stores (up six percent) and apparel stores (up 2.8 percent).

But growth in those sectors was offset by a 2.2 percent decline in hardware and building supplies, suggesting the long building boom which sustained the economy in 2002 is beginning to taper off. Poor weather in January was also blamed for the decline.

The motor vehicle sector experienced another poor month, with sales falling 12.9 percent. Motor dealers attributed the decline to low inventory sales, but have also complained that they are increasingly having to reduce the number of models they an sell by Bermuda's vehicle size restrictions.

The service station sector reported another strong month, with gasoline sales jumping 14.5 percent. But much of this increase was attributed to the rise in fuel prices in the last few months.