Retailers are feeling the pinch from the economic downturn as the volume of sales fell by 6.3 percent in October in real terms, according to the latest figures released by Government.

The Department of Statistics' Retail Sales Index revealed it was the sixth consecutive drop in monthly sales this year after adjusting for the annual retail sales rate of inflation.

The biggest sectors to suffer from the decline in sales were motor vehicle dealers (-12.5 percent), building material suppliers (-0.1 percent) and clothing retailers (-6.5 percent).

But overseas spending was up 6.7 percent at $5.2 million in October compared to $4.9 million for the same period last year, as were food stores (+9.8 percent) and service stations (+5.8 percent).

The value of total sales was down 0.3 percent in October versus last year, representing $94.8 million in gross turnover.

The motor vehicle trade, which declined 0.6 percent in October 2007, posted negative sales growth for the month as demand for new vehicles fell.

Meanwhile the drop in the number of new construction projects coming online meant fewer contract sales for building material vendors, as the sector endured its second biggest decrease for the year after the 19.4 percent fall in March.

Clothes stores also registered their fourth straight decline in sales during the month of October, with gross revenue dropping in contrast to the 4.2 percent increase recorded in October 2007.

However food sales rose in October, with an extra day of shopping for the month, driven by the 7.9 percent rise in the price of food.

Growth in receipts for service stations continued to slow as the sector experienced its weakest increase for the year to date, contributed to by an ease in fuel price hikes to 5.1 percent rise versus a 22.4 percent increase in September.

All other store types, including furniture, pharmaceutical, electronic and tourist items retailers, meanwhile, saw a two percent decline in sales, reflected in a fall in receipts at tourist-related and miscellaneous stores of 20.6 percent and 17.6 percent respectively. This was partially offset by stronger sales activity by pharmacy outlets up 10 percent.