Consumer spending fell, but household consumption rose over the fourth quarter of 2008, according to the latest figures released by Government.

The Department of Statistics Quarterly Bulletin of Statistics for last year's fourth quarter revealed a 0.8 percent drop in retail sales year-over-year, with almost $2.3 million less in sales activity as gross turnover declined from $299.8 million in the fourth quarter of 2007 to $297.5 million for the same period in 2008.

Overall, all sectors experienced weaker aggregate sales compared to the previous year's levels, with the exception of food stores and all other store types.

In contrast, usage of goods and services for the home increased 4.4 percent to $2.7 billion, amounting to nearly 46 percent of the total Gross Domestic Product in 2007 or slightly below the 48 percent share the year before.

The $113 million advance in expenditure in 2007 was down to the combined effect of higher income levels (5.5 percent), increased prices (4.2 percent) and a bigger workforce (4.2 percent).

But population increase played a lesser role in consumption growth, as the number of residents was estimated to have risen by only 212 people or less than half-a-percent in 2007.

All major components of household consumption increased, except for transportation expenditure, which fell 3.7 percent, while personal consumption spending on durable goods, non-durables and services all advanced in 2007 by 4.3 percent, three percent and 3.9 percent respectively.

As income rose, the proportion of income spent on non-durable goods, such as food and clothing, increased, but at a slower rate than compared to lower levels of income, with non-durables now accounting for 24 percent of total household consumption versus 27 percent a decade ago.

Expenditure on food was Expenditure on food was $12 million or 3.5 percent higher than the previous year, however, consumers ate out less by 2.3 percent in 2007, with spending on clothing, accessories and footwear up 5.9 percent, due mainly to a rise in overseas spending, which advanced by $3 million in terms of imported clothing compared to $1 million spent locally.

Households spent 14.5 percent more on personal computers, influenced by the population's growing computer literacy and the desire to keep pace with technology. Conversely, motorcycle purchases declined by almost 40 percent.

Elsewhere the level of expenditure on household services rose as rent and property maintenance payments increased, while foreign travel spending jumped 11.8 percent over the past year, reflecting a $16 million advance in travel expenses and a 6.2 percent rise in the number of resident trips abroad.

As far as retail sales were concerned, sales were significantly lower at motor vehicle dealerships due largely to lower stock levels and weakened consumer demand, with dealers seeing activity slip a further 3.5 percent during the fourth quarter.

Construction sales also weakened during the fourth quarter of 2008, as building material stores and residential repairs experienced a flagging demand of 5.6 percent, while service stations underwent their first fourth quarter decline since 2001, with average sales slipping 2.5 percent over that period, partly as a result of a 2.1 percent fall in gas prices.

On the flipside, food store sales rose by 7.7 percent during the fourth quarter, due mostly to the 8.3 percent rise in food prices during the quarter.