Retailers on Friday had confirmed what they already knew - that residents are spending a lot less in shops on the Island.

The Retail Sales Index, which is a key economic indicator, showed in June local shoppers bought 6.1 per cent less than they did the year before.

But the amount of goods imported has soared by more than nine percent, with the trend of residents buying abroad continuing to escalate.

It is the third consecutive month of decline so far this year, with four months out of the first six showing a fall, one month remaining flat, and only January showing an increase this year.

The monthly index showed the value of retail sales fell 3.2 percent below the previous year's level with an estimated gross turn over of $46.3 million.

After adjusting for inflation, which was registered at 3.1 percent in June, the total volume of retail sales fell by 6.1 percent.

Although the number of shopping days were the same during the month, June 2001 had one more Saturday than the previous year.

Figures indicate a sharp decline in gross revenue flows for the motor vehicle sector. According to the Government statisticians, this is a continuing trend which has continued to add to the overall decline in the retail sales index.

Consumer demand for motor cycles fell by 15.5 percent year on year. As in April and May 2001, auto dealers are still experiencing low inventory levels which are suppressing sales activities in the sector, the compilers of the index said.

Sales of petrol on the other hand were up fractionally for the month by 0.7 percent.

Spending on clothing and footwear also continued to fall compared to last year, and sales in the apparel sector in general fell by a massive 9.8 per cent.

Spending on hardware and building supplies rose by 6.3 percent over the previous year. In the general retail sector, gross revenue flows fell by 2.6 per cent.

More than half of the participating outlets in the monthly gathering of sales data reported softer sales for the month, with the largest declines experienced by those outlets catering to tourist demand.

Sales of electronic equipment and personal care supplies also fell below the levels reached the year before.

Spending on boating equipment, furniture and home furnishing and home appliances increased.

Liquor merchants saw a modest increase in sales in alcohol, which went up by 2.6 percent year over year.

Food stores also saw sales rise by 3.1 percent in June 2001 compared to June 2000.

Residents returning to the Island from overseas holidays and business trips declared goods worth $2.48 million worth of goods at customs. This represents a 9.2 percent increase year on year.

During the second quarter of 2001 about $9.31 million worth of goods was declared compared to $8.63 million in the second quarter of 2000 - nearly an 8 percent rise.

The Government statisticians said that this increase partly reflected the higher volume of returning residents to the Island, which went up 6.2 percent in the quarter.

The number of returning residents rose from 32,463 in the second quarter of 2000 to 34,480 in the second quarter of 2001.