The Chamber of Commerce's retail chairman Kristi Grayston has called on shoppers to understand the 'Buy Bermuda' message as overseas spending rose for the fifth month in a row.

The amount spent on goods bought abroad increased 10.7 percent from $6.7 million in August last year to $7.4m in August 2007 and Ms. Grayston, who also owns Pulp & Circumstance in Hamilton, has urged consumers to not only help boost the Island's economy but also help themselves by purchasing goods in Bermuda.

Meanwhile consumer spending was on the increase for the third month running according to the latest statistics released by Government.

Retail sales for August 2007 rose 3.4 percent or $3.1 million above the $90.3m figure recorded the same time last year, following increases of 0.8 and 6.6 percent respectively for June and July this year.

"It is encouraging to see an overall increase in consumer spending," said Ms. Grayston. "And it is encouraging after last month's increase as well.

"But, obviously the scary thing is the 10.7 percent increase in overseas spending - it would be nice to see that go down for one month at least."

She said it was down to spenders' perception that the goods they want are not available in Bermuda, so they have to look elsewhere, allied to the amount of construction currently going on putting potential buyers off.

"I think there is still a perception by people that they are not available in Bermuda, and they often are, and I think Hamilton is so difficult to move around in with so much construction going on and I think people still don't understand the Buy Bermuda message and how it impacts on everybody."

Above all, Ms. Grayston believes people's idea that products are cheaper overseas than on the Island is hampering Bermuda's retail sales.

"There is a perception by people that things are cheaper overseas, which in some cases in a way they are - they think that everything is more expensive in Bermuda and people need to understand that there are lots of things that are also cheaper in Bermuda like clothing and I think that is also the perception that the choices are not available, but the problem is that more people spend overseas the less choice there is here because there are less funds to stock shops with those goods," she said.

"But, on the plus side, it is nice to see the apparel market bounce back and I think that has been for several months now, boosted by the reopening of Coopers, which has made a big difference."

All of the sectors, including food and apparel and clothing reported positive sales in August with the exception of motor vehicle dealers and building material vendors.

Apparel was the leading seller, with clothing retailers registering their eighth consecutive increase in sales revenue for the year as gross revenue flows picked up 11.9 percent compared to last year, following a 4.5 percent growth in July 2007, reflecting the fourth month of double-digit gains for the industry this year and making a recovery after a slow middle of the year.

Grocery sales continued to remain strong too, as gross receipts for food stores experiencing a 6.8 percent increase in August 2007 and the sector enjoying positive monthly gains in sales receipts since September 2002.

But it was not such good news for the consumer, who had to foot the bill for a 3.2 percent rise in the price of food compared to August last year.

Liquor stores also found their products in high demand as their sales grew by 4.9 percent, as did service stations (1.9 percent), while all other store types, including furniture, appliances, electronics, pharmaceuticals and personal care supplies, rose by 5.1 percent, mainly down to higher furniture and household items sales.

But, on the flipside, new car sales took a tumble, with the motor vehicle industry posting negative sales for the fourth month this year, as the figures have risen and then fallen in consecutive months.

Dealers reported a decline of 10.5 percent in gross sales in August 2007, with lower stock levels and weak consumer demand for current listed models largely contributing to the fall.

Construction sales was another area to suffer, and this was reflected in retailers in the building material and hardware trade recording a sales decline of 2.5 percent in August.

Fewer contract sales and lower demand for inventory accounted for weaker sales and lower demand for inventory as gross revenue flows for this sector lost strength after two months of increased sales in June and July 2007.

Combined local and overseas retail sales totalled $100.8m in August this year, $3.8m higher than August 2006. Of this total, 7.4 percent represented overseas spending, a slightly higher proportion than the 6.9 percent recorded last year.