The retail sales index has risen by 1.5 percent after sales in cars grew during June 2003, according to figures released by Government yesterday.

The index, which measures the amount of goods sold in Bermuda's stores, rose by 4 percent, but after adjusting for inflation of 3.2 percent during June, fell to 1.5 percent.

During the month, which had 24 shopping days - the same as a year earlier, residents spent $48.5 million, a rise of $2.1 million year on year.

The motor vehicle sector saw sales grow by 17.8 percent year over year, after all auto dealers said they had sold more cars during June than a year earlier.

"Many dealers reported that the increase in sales activity was due in part to higher stock levels this year as opposed to June 2002 when inventory levels were abnormally low resulting in depressed sales," said the notice from the Statistics Department.

The next sector to show the biggest growth was the "all other store type" sector, which saw sales jump by 12.6 percent compared to the same month a year earlier.

The Statistics Department said that this was due to big ticket items such as home appliances, entertainment equipment and furniture were in strong demand, with the combined sales of these objects rising 15.1 percent year over year.

And stores selling clothing and accessories also got a boost. The apparel sector, which is made up of clothing, jewellery and other accessories, went up.

This follows promotional sales, the opening of new branch stores and new fashion designs for the summer season pushed up sales by 5 percent.

The liquor store sector rose moderately by 4.1 percent and the service station sector saw petrol sales rise by 1.5 percent year over year, due to the higher price of fuel at the gas pump.

The sale of building materials dipped by 2.1 percent below the level reached a year earlier after a general slowdown in building activity in the construction industry.

Food stores posted a moderate decline in aggregate receipts during June of 3.1 percent - but no reasons for this fall were given by the department.

Total retail sales for the second quarter of 2003 increased by 6 percent year over year, but in real terms, after adjusting for inflation, retailers saw a 2.1 percent rise in the volume of sales.