Bermuda consumers are tightening their belts, according to the latest statistics released by Government.

Retail sales activity fell for the fifth straight month, by 5.3 percent in September, after adjusting for the annual retail sales rate of inflation, measured at 5.8 percent.

Retail sales value edged up 0.2 percent during the same month, its slowest growth for six months, as per the Department of Statistics' Retail Sales Index.

Overseas spending also dropped 6.8 percent to $5.5 million for September compared to $5.9 million for the same month last year. It was the first year-on-year fall recorded since October 2007.

Food sales growth slowed to 5.1 percent following two consecutive months of double-digit gains, with the 6.2 percent rise in the price of items the main contributor to the growth in receipts, translating into an actual 1.1 percent decline in the volume of sales for the food sector.

Fuel sales were up 8.5 percent year-over-year, representing the weakest monthly increase for the year to date, as gas prices continued to climb as a 22.4 percent rise in the cost of premium and mixed gasoline took effect.

But motor vehicle retailers experienced a positive turnaround in sales, reporting a 7.8 percent increase in September 2008 versus the same time last year, mainly due to the 9.5 percent rise in the price of motor vehicles, with the inflation-adjusted figures showing a decline in unit sales for new cars.

Apparel stores saw a third successive month of sales falls as consumers reined in their spending, while gross turnover for the sector dropped 10.8 percent — the largest decline in activity for the year.