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16 percent jump in overseas purchases in September

Overseas purchases by residents returning to the Island from business and vacation trips jumped 16.7 percent in September 2005, while total retail sales for the month advanced 3.9 percent on the heels of a sizeable 10.3 percent increase in the previous month.

Residents returning to the Island from business and vacation trips declared overseas purchases of $4.8 million during the month, a modest $700,000 increase over last September?s purchases.

Such spending however only represents about 7.5 percent of total retail sales which totalled $64.3 million in September 2005, $3 million more than in September 2004, according to statistics in the monthly Government bulletin released yesterday.

The gross turnover in the retail sector was estimated at $59.5 million or $2.3 million more than September 2004.

After adjusting for the annual rate of inflation, measured at 2.8 percent in September 2005, the volume of retail sales rose a modest 1.1 percent when compared to the sizeable 7.2 percent increase registered in August 2005.

The largest sales gains this month were recorded by retailers in the All Other Stores, Service Stations and Food Sectors.

Apparel stores and the building sector were the only ones to buck the trend with both registering declining sales for the third consecutive month.

While apparel retailers reported double-digit sales gains during the month they have been unable to make up for the loss of sales following the closure of Trimingham?s this summer.

Apparel sales plummeted 26.1 percent in September 2005 compared to the same month of 2004.

Sales of construction related materials continued to weaken in September 2005. Building material retailers experienced a turnaround from the second quarter when double-digit gains were recorded due to a recent boom in the construction industry, said the Department of Statistics.

Escalating fuel costs drove service stations sales 19.1 percent ahead for the month of September with much of the upswing in gasoline sales stemming from a 17.3 percent jump in the cost for premium gas and a 20.8 percent gain for mixed gas.

Gross receipts for food stores advanced 8.1 percent in the month attributable partially to a 3.8 percent rise in the price of food items.

The Department of Statistics reports that motor vehicle dealers experienced a softening in sales with a modest 7.3 percent increase in September. Motor vehicle dealers have enjoyed strong sales since February 2005 reporting double-digit increase for all but two months.

?Sales have tempered compared to robust sales reported in this year?s second and third quarter,? the Department of Statistics said.

The index for total retail sales stood at 179.7 index points in September 2005. There were 25 shopping days in both September 2004 and 2005.