Motor vehicle dealers and the hardware and building industry are leading the retail sales index after reporting a surge in business in June.

Although residents are spending locally they continue to spend millions more each year with residents returning to the Island from business and vacation trips during June declaring overseas purchases of goods valued at $4.46 million.

The level of overseas spending was 33.5 percent more than the $3.34 million recorded in June 2003. Returning residents who declared overseas purchases climbed by 19.2 percent in June, contributing to the surge in spending.

The building and hardware industry enjoyed a year to year gain of almost 30 percent this June with private home repair and renovation work as well as public construction projects boosting the demand for building materials and supplies.

The retail sales index compares the value of retail sales for this June to the same month in 2003. There were 25 more shopping days this June, one more than in 2003.

The total value of retail sales increased by 7.9 percent during June 2004 with a gross turnover in the retail sector estimated at $52.7 million.

While all sectors in the index reported increases in gross revenue flow, the building and hardware industry and motor vehicle dealers had the year to year gain of 28.9 percent and 21.1 percent respectively.

Gross sales for motor dealers grew by 21.1 percent in June compared to the corresponding month in 2003. The jump in sales was due to additions to automotive stock levels, coupled with a strong consumer demand for new vehicles.

Sales of appliances and electronic declined by 3.4 percent from the previous year, and gross receipts for marine supplies was fractionally lower compared to June 2003.

All other areas experienced an increase of at least 1.8 percent.

Residents also appear to be drinking more as gross receipts of liquor stores climbed 8.2 percent compared to the previous years level. This rise was partially a result of the upward year to year change in the price of beer, wine and spirits, measured at 6.2 percent in June 2004. An additional day for grocery shopping this June also helped push food store receipts up to 6.5 percent over the same period last year.

Service stations recorded a growth in gross revenue sales of 7.2 percent over the same period last year. The upswing in petrol sales reflected in part the higher cost of fuel in June 2004.

Sales of clothing, footwear and other apparel items pushed gross revenue for apparel stores up 3.6 percent compared to last June.

The value of retail sales in all other stores posted a gain of 1.8 percent for the month. Furniture stores led the sector with substantial sales growth over the last year, while sales of pharmaceutical and personal care products also showed improvement during the month.