according to statistics released yesterday by the Government Statistics Department. It is the lowest volume index drop since July 1999 when the index dropped 2.3 percent. The last time the index dipped into negative was five months ago in March when it fell 1.8 percent.

The department reported the value of sales had gone up marginally by 0.7 percent, but adjusting for a rate of inflation of 2.7 percent in the month, the volume of retail sales decreased.

Consumers spent $51.3 million in August -- down from $56.9 the month before.

There were 25 shopping days in August this year -- one fewer than the year before.

Sales of the motor vehicle and service station sector declined 1.3 percent and vehicle sales dipped 4.5 percent.

This reflected lower inventory levels after four consecutive months of robust sales.

Petrol sales, however, went up from the same period last year, rising 6.9 percent helped by the higher price of gasoline.

The amount of money, or gross revenue flows, in the general retail stores fell 3.4 percent. Furniture and home furnishings' sales saw a marked decline over the previous year's level after a decline in contract sales. Hardware and building supplies also fell during the month.

But boat and engine sales showed a strong increase and spending outlays on clothing and footwear were higher.

Spending down Also on the up marginally were sales of pharmaceuticals and personal care supplies.

Food stores posted a 5.8 percent gain, while liquor store merchants' sales soared by 11 percent. This was due to Cup Match being in August this year compared to July in 1999.

Residents returning from overseas to the Island from both vacation and business trips brought in goods worth $4.6 million. This is up 16.1 percent compared to the same month last year. The level of overseas spending for August 2000 was about eight percent of gross turnover in the local retail sector.