Retail sales declined by their smallest amount in at least one year, but some sectors, including building material stores continued to feel the pain, according to the latest figures released by Government.

The Department of Statistics' Retail Sales Index revealed that, after adjusting for the annual rate of inflation, measured at two percent, the volume of retail sales contracted 3.5 percent during February compared to a fall of 8.4 percent the previous month.

But there was a silver lining, with the motor vehicle sector sales arresting a nine-month slump in sales by posting a 13 percent rise.

The hardest hit sector was building materials, which dropped 18 percent as demand for construction materials dried up due to the completion of major projects and a decline in building workloads across the industry. Sales for the sector as whole have dropped for 10 of the past 12 months to February 2010.

All other store types were also impacted with revenue dipping by about eight percent. Furniture outlets and tourist-related stores led the way, with decreases of 40 percent and 39 percent respectively, while sales of pharmaceutical products and marine supplies also fell over the same period.

Apparel retailers, meanwhile, experienced a 6.5 percent drop in sales revenue for the month, as sales reverted back to the negative growth seen during each month in 2009 prior to the marginal gain of one percent in January 2010.

Sales of motor vehicles rebounded as a result of the additional 35 units of cars sold compared to the same period in 2009, while service stations registered a 10 percent sales increase over February 2009, mainly down to an 11 percent rise in the price of fuel.

Gross receipts for food stores advanced two percent in February versus the same month in 2009, however liquor store sales decreased two percent compared to February last year, despite a three percent increase in alcohol prices during the period.

Residents returning to the Island from business and vacation trips declared $3.8 million in overseas purchases during the month, slightly less than the $4.1 million recorded in February 2009.