Cash registers around the Island are quieter than a year ago, with the latest retail figures showing a four percent fall in the volume of sales once February's 2.2 percent rate of inflation is factored in.

Even without the adjustment for inflation, shoppers spent $1.5 million less during February than they did in the corresponding month in 2006 — a 1.9 percent decrease — to $75.6 million.

The first fall in retail sales since last June has been revealed in the latest retail sales index figures, which have also been re-graded with the base year of 1995 now replaced by 2006 and a wider sampling of shops and retailers to improve accuracy.

As part of an updating of the methodology used to calculate the spending trends of Bermuda's population the use of the all-items consumer price index has been replaced with a "price index weighted" component, which the Department of Statistics believes more accurately reflect goods sold by local traders.

A consequence of the change is alterations to the monthly and yearly index numbers for 2005 and 2006.

During February there were weaker sales for motor vehicles and building materials, and less demand for items from shops not selling food, alcohol or apparel items.

The drop in retail sales brought to an end a run of seven months of continuous sales growth.

Sales of building materials dropped 9.2 percent compared to the same month in 2006, and was the second consecutive month that the sector has slipped following a seven percent decline in January.

Wet weather and a decrease in stock inventory were cited as factors for the decline.

January had been a good month for motor vehicle sales, but that was not the case in February as the year-on-year sales figure went down by 23.9 percent. The drop in sales was attributed to lower stock levels and dampened demand together with more expensive models being on sale.

Shoppers also shied away from "big ticket" items, with sales in the "all other store types" category — which does not include food, liquor or apparel — dropping 3.8 percent.

On the plus side there was strong sales in grocery items with food sales up 7.4 percent, partially attributed to a 3.1 percent rise in the price of food items. Apparel sales also went up by 19.8 percent as a result of expanded floor space and increased product lines.

Liquor store sales rose 3.8 percent and gas station sales were 3.4 percent higher.

Overall spending for February, including local and overseas purchases by Bermuda residents, was $79.6 million representing a fall of $1m compared to the same month in 2006. The amount of overseas spending by Island residents went up to $4 million for the month, a rise of $500,000 year-on-year.

The retail sales index for February, estimated against the 2006 base index of 100, stood at 84.5