Retail sales volume fell by 4.3 percent for January 2009, continuing a nine-month stretch of declines, according to the latest figures released by Government.

The Department of Statistics Retail sales Index revealed that the volume of sales, after adjusting for the annual rate of inflation of 5.3 percent for January, has been dropping steadily since May 2008, with the last gain, of 4.3 percent, recorded the previous month.

But the total value of sales was actually up 0.8 percent for January 2009 compared to the same period last year, following three straight months of decreases, with consumers spending an estimated $84.5 million on retail products during the first month of the year.

The main drivers behind the increase were the combined sales activity in the food stores, liquor stores and motor vehicle stores.

Overseas spending, however, was down 5.2 percent at $5.5 million in January from $5.8 million in January last year as a lower value of declarations was made by residents returning to the Island from business and holiday trips.

Gross receipts for food rose by 10.5 percent year-over-year, mainly due to the cost of food items increasing by 7.7 percent during the same period.

Auto dealers also experienced a second consecutive month of positive sales gains of 5.2 percent in January 2009, following the strong boost in sales reported in December 2008, in part down to a 9.1 percent rise in the price of motor vehicles during the month, coupled with higher inventory levels.

All other type stores, including retailers of furniture, appliances, electronics and pharmaceuticals, registered a one percent growth in January, reflecting a strong sales activity of 9.9 percent recorded by pharmacies.

However, these gains were offset by lower consumer spending on boat and marine supplies, and furniture, appliances and electronics, which fell 20.3 percent and 4.5 percent respectively.

Meanwhile, all of the other sectors were down, with service stations seeing a 12.2 percent drop in sales revenue, mostly due to the 8.3 percent decline in the cost of fuel, marking the third straight month of weakened sales at service stations after 13 months of positive performances.

Building material traders also reported a 16.9 percent fall in sales for January 2009, the fourth such decline in as many months as demand for construction materials bought locally dropped off.

Conservative consumer spending continued to have a negative impact on apparel sales leading into the New Year, with gross turnover for the sector down 14.7 percent in the opening month of 2009, a significant turnaround from the 6.1 percent increase experienced only a year earlier.