The latest retail sales index figures, released the day after inflation in Bermuda was reported to have dropped to 3.1 percent, reveal residents on business trips and vacations declared $6.3 million-worth of overseas purchases when they returned to the Island, representing an increase of $700,000 on April 2006.

Consumers spent $86.8m with local retailers and service providers, which on the positive side was half-a-percent up on a year ago, however once inflation is taken into account the volume of local sales actually fell 2.5 percent.

The value of retail sales edged up $400,000 from March to April, coming after a strong performance in March when the sales figures were boosted 9.9 percent.

A closer inspection of trends shows higher sales for apparel, food and items sold in the "other stores" category, but weaker sales of motor vehicles, building materials and from liquor stores.

Grocery sales have consistently been upwards since September 2002, and in April that continued with food stores reporting a 1.8 percent increase in gross receipts, partially as a result of a 3.8 percent average increase in the price of items.

After eight months of consecutive double-digit gains in apparel sales, the sector slowed to 3.8 percent in April although a number of individual major stores enjoyed stronger sales due to expanded floor space and product lines.

Car and motorbike sales remain shaky with another double-digit fall in motor vehicle sales, which were 13.7 percent down year-on-year. This comes on the heels of a 15 percent drop in December and 23.9 percent drop in February. A partial recovery in March has not been sustained and the fall has been attributed to lower stock levels and less consumer demand of currently available models.

There was also a fall in the building materials sector with sales down 4.2 percent, the third month of the year when the sector has seen a year-on-year decline.

"This downturn in sales revenue was due to a shift in large contract sales, which have the tendency to cause extreme movements in the monthly sales data in this sector," states the Department of Statistics in its monthly report.

Service station sales rose 4.2 percent, maintaining an upward trend for the year. Gasoline prices are 6.2 percent higher than last April.

Combined local and overseas retail sales totalled $93.1m, an increase of 1.2 percent year-on-year, the overseas portion of sales making up a higher proportion of the figure, 6.8 percent compared to 6.1 percent in April 2006.