The volume of retail sales decreased 1.5 percent in July while overseas spending climbed almost $1 million year-on-year.

Although the index rose by 2.1 percent with gross turnover estimated at $51.1 million ? $1.1 million more than in July 2003 ? with the annual rate of inflation adjustment of 3.7 per cent in July 2004, in real terms, the volume of retail sales decreased by 1.5 per cent.

The number of returning residents who declared overseas purchases climbed by 22.4 percent during the month and contributed to a surge in spending levels. Goods purchased overseas were valued at $3.97 million in the month, nearly $1 million more than the $3.05 million recorded last July.

In its retail sales summary for July 2004, the Department of Statistics reported increases in gross revenue flows for all sectors with the exception of the all other store type sector, which reported a sales decline of 8.5 per cent. Within this sector, gross receipts for appliances and electronics fell 9.5 percent compared to the same period last year. Sales of pharmaceutical and personal care products as well as outlays for marine supplies also decreased during the month. Furniture stores reported a slight rise in retail sales activity over July 2003.

The Department of Statistics reported that all other sectors experienced single-digit sales gains ranging from 2.8 per cent to 8.9 per cent year-over-year. Gross sales for motor vehicle dealers grew by 7.7 per cent over the previous year on increased consumer demand for new vehicle models, additions to stock levels and poorer than normal performance in July 2003.

The building and hardware sector registered a 7.0 per cent gain in July 2004 over the same period in 2003, but this represents a modest decline from the double-digit growth rates experienced during the first six months of the year.

Sales of clothing, footwear and other apparel items pushed gross sales revenue for apparel stores up 3.0 per cent year-over-year.

Liquor stores reported 7.8 per cent growth in the sales of beer, wine and spirits during the month of July. The Department of Statistics said that the upswing in sales was partially the result of the year-to-year increase in the cost of liquor, measured at 6.3 per cent in July 2004.

Although there were only 25 shopping days during the month ? one less than in July 2003 ? food store receipts moved up 2.8 per cent over the same period last year.

Gross sales for service stations climbed 8.9 per cent on the same period in 2003. The Department of Statistics says that higher fuel costs during the month, particularly over the Cup Match Weekend, contributed to the rise in sales.