percent increase in real terms after adjusting for an annual inflation rate of two percent, according to the latest figures from the Statistics Department.

Residents returning from abroad declared purchases valued at $28.81 million, a decline of 0.9 percent in real terms compared to 1996.

In his budget statement yesterday Finance Minister Grant Gibbons noted that retailers have experienced real increases in sales since May 1997 after ten years of flat performance.

"Another positive development for retailers was that the value of goods declared at the Airport by returning residents did not increase in the last year,'' he said. "The strength in retail sales is a reflection of the growing economy, rising employment and consumer confidence, combined with efforts by retailers to increase their overall competitiveness.'' In December retailers sold $62.9 million worth of goods, a real increase -- after adjusting for inflation -- of 6.2 percent, according to the Statistics Department. December's inflation rate was 1.9 percent.

Stores in the general category led the way in the growth, with sales increasing by about 10.7 percent in real terms.

"Furniture stores reported strong sales which were partially attributable to extended shopping hours for the Chirstmas season,'' the Statistics Department stated. "Demand for appliances and other household items was strong and this was partially a result of special seasonal promotions. Hardware sales were down marginally. Clothing and footware posted moderate gains but the demand for jewellery remained high, helped by seasonal sales. Larger department stores also expereinced strong sales.'' Food stores had increased sales in real terms of 6.6 percent, while liquor sales fell by 5.8 percent. Motor vehicle dealers and service station sales also declined by 5.3 percent. Residents declared $3.71 million worth of goods to Customs in December, a decline in real terms of 12 percent.

BUSINESS BUC