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Retail sales fall as building materials plunge

Building materials sales fell by more than a quarter in March, driving retail sales to another negative month.

But in most other retail sectors there were signs that the trend of falling sales of the past two years may be bottoming out.

Figures released by Government yesterday showed consumers spent an estimated $89.4 million at retailers in March this year — a fall of 0.8 percent when compared to the $90.1 million in March 2009. Retail sales volume — which is adjusted to take account of inflation — fell three percent.

The drop-off in construction activity after the completion of several major projects contributed to a 28.5 percent fall in building material sales. The Retail Sales Index showed that sales in this sector have been declining since August 2009.

Tourism-related stores also felt the pain of the economic downturn, as their sales dropped 36 percent compared to the same month last year, while furniture outlets' sales dropped 39 percent.

However, there was brighter news for apparel stores, whose sales were the highest for almost two years and which rose 3.6 percent compared to March 2009.

Another long-suffering sector, motor vehicle stores, held its own, with sales rising 0.2 percent in March, following their 12.7 percent year-on-year rise in February.

Food stores saw a six-percent gain, as food prices rose two percent over the same period. Liquor store sales rose by five percent.

Pharmaceutical stores and marine supplies stores also reported gains.

Residents returning to the Island declared overseas purchases of $4.6 million in March, slightly higher than the $4.4 million in March the previous year.