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Bermuda clothing purchases fell 26 percent in November

Consumer spending grew by 2.6 percent in November as shoppers parted with $52.3 million to buy a range of goods from new cars to basics such as groceries and gasoline, figures released by Government yesterday show.

But Bermuda residents cut back on new clothing purchases, pushing down apparel sales 26.4 percent, data compiled in the monthly Retail Sales Index revealed.

The drop in clothing sales appeared to have little to do with increased sales abroad. And large retailers fared better than smaller outlets.

The overall value of sales made by Island retailers rose 5.5 percent in November. The volume of sales, which takes into account the month?s 2.8 percent rate of inflation, advanced 2.6 percent over November 2004. In total, shoppers paid out $2.7 million more at the cash register.

Overseas spending in November was virtually on par with a year ago, based on the $7.16 million H.M. Customs collected from returning residents.

Slightly more, $7.19 million, was recorded in Customs receipts during November 2004. Overseas spending figures incorporated into the RSI are based solely on air arrival declarations and don?t take into account online and catalogue purchases that are shipped in by Island residents.

New car sales advanced 26.1 percent year on year, partly the result of motor vehicle retailers stacking showrooms with greater than normal inventory, the bulletin said. Large vehicle sales also attributed to the rise in sales.

Basics took more from pocketbooks in large part because food and gas prices rose.

Gross receipts taken in by grocers were 8.1 percent higher, with food item prices rising 3.2 percent. The sector, on average, gained 6.6 percent in 2005 compared to sales being 4.6 percent higher the year before.

November sales recorded by service stations surged 17.9 percent, marking four consecutive monthly gains for this sector. Much of the upswing in gasoline sales was due to the high cost of premium gas (+7.8 percent) and mixed gas (+9.3 percent), the bulletin said.

Purchases of construction-related materials were also 2.4 percent higher ? the first advance in sales for this sector since a 9.7 percent jump in June, 2005.