January sales failed to boost the Island’s retail sector which saw spending plummet by $5 million compared to the same time last year.

The fall comes on the back of depressing pre-Christmas sales, which fell five percent, and a total fall in consumer spending last year of $40 million.

According to the Retail Sales Index released this afternoon, consumers spent an estimated $78 million in January — five percent below the $83 million in retail sales recorded for January 2009.

The RSI report said: “The downturn in consumer spending was driven primarily by weak sales within the motor vehicle sector and all other store types, both of which experienced double-digit year-over-year declines in sales revenue.

“After adjusting for the annual rate of inflation, measured at 3.2 percent in January, the volume of retail sales plunged eight percent. This reflected an overall decline in the volume of sales or the total quantity of goods sold in the retail sector for the month.”

* See tomorrow’s Royal Gazette for the full story.