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Late Easter hits March retail sales

Construction slows: Building supplies sales dipped in March on a fall in construction activity

Retail sales slid 2.3 percent in March compared to the same month last year — a dip partly attributed to a later Easter holiday this year.

Leading the slide were building supplies stores, whose takings slumped 19.2 percent on the back of a decline in construction activity, according to the Retail Sales Index commentary published today by the Department of Statistics.

Motor vehicle sales surged 33.3 percent in March, registering a third consecutive month of double-digit, year-over-year growth, as more cars and fewer motor cycles were sold.

The fall in overall sales comes after gross receipts increased in three of the previous four months had raised hopes that the economy was improving. Retail sales volume, which takes inflation into account, fell 4.1 percent in March.

But the movement of the Easter holiday from March last year to April this year may have been a factor in the fall, especially in the 3.3 percent decline in apparel store sales, according to retailers cited in the report.

The later holiday may also have affected year-to-year comparisons for food sales, which tumbled three percent, despite a 3.2 percent increase in the price of food. Tourist-related stores also saw their sales decrease 6.7 percent.

Service stations’ sales fell 4.6 percent, driven by a 1.4 percent decrease in the in fuel prices.

Overseas purchases declared by residents returning to the Island fell 5.4 percent to $3.5 million, as travellers spent less on clothing and footwear, electronic goods and photographic equipment.

There were 26 shopping days during the month, one more than in March 2013.