Retail sales inched up 0.7 percent in May relative to the previous year's figures, according to Government statistics released yesterday.

The value value of sales was 2.7 percent higher in May 2002 than in May 2001, but their volume increased just 0.7 percent when inflation is taken into account. Gross turnover in the retail sector was estimated at $45.9 million for the month.

There were the same number of shopping days in May 2001 as in May 2002 - 26. Four Saturdays, traditionally busy days for retailers, fell in both months.

The building materials and hardware and liquor sectors reported the most impressive gains - both experienced a 7.3 percent increase in sales, although hardware stores results were mixed, with poorer performers muting the successes of some businesses.

Vehicle sales rose 4.4 percent, which dealers attributed to higher inventory levels. Although some sectors posted respectable gains in volumes, their successes were offset by the poor performance of retailers who rely on tourist spending. Half of the apparel stores surveyed reported lower sales this May than last.

Tourist-related stores reported a 23.9 percent decline in sales, although that figure can be at least partly explained by the closure of Buds, Beans & Books, Smuggler's Reef and other shops after Daina Ltd., their owner, went into receivership last November.

Although the names of stores which submit data for the retail sales index are confidential, a document leaked to The Royal Gazette last August indicated that Daina was included in the "all other store type" category, which includes tourist-related sales as well as home furnishings, appliances and electronic equipment.

But one of the traditional drains on the local economy - resident spending overseas - declined 5.1 percent from $3.5 million in May 2001 to $3.32 million this year.