Construction sales led the way for Bermuda's retail sales over the month of October.

Sales activity in the building and hardware sector reached double-digit gains, increasing 10.3 percent compared to October 2006 and following a 23.4 percent decline in sales for the previous month.

A rise in contract sales translated into stronger sales for building and hardware vendors who supply construction-related materials.

Overall, growth in sales for the Island's retailers during October outpaced the sales performance of its largest trading partner, the US, as they advanced 6.9 percent in contrast to the fractional growth of 0.2 percent experienced by US retailers over the same month.

The gross turnover in the retail sector was estimated at $95.2 million, $6.2 million more than in October 2006, with every sector apart from motor vehicles reporting significant gains.

The strongest sales revenue for the month, apart from in the building materials sector, were recorded in the food stores and other store types sectors.

Gross receipts for food stores rose 9.2 percent in October compared to the same period last year, mainly due to the extra shopping day, combined with a four percent increase in the price of food.

Liquor sales also experienced positive sales for the month, recovering from a 7.1 percent decline in September, to post a 7.3 percent advancement the next month, while the all other store types sector, including furniture, appliances, electronics and pharmaceuticals vendors posting higher sales in October, up by 8.4 percent on the previous year.

Service station sales also rebounded after experiencing the first decline of the year in September, with sales in the sector growing 7.3 percent the following month, largely attributed to the 8.6 percent rise in the price of gasoline over the same period.

Overseas spending, meanwhile, was down 4.3 percent from $5.1 million in October 2006 to $4.9 million for the same period this year, with local spending up $94.2 million from $89 million over the same comparative timespan.

On the flipside, motor vehicle retailers suffered negative sales for the third consecutive month, as gross receipts declined 1.2 percent in October, accounted for largely by dealers reporting lower stock levels, which in turn, resulted in weak consumer demand for current models in the inventory and a lower sales performance.