dropped in comparison to July's, Government figures show.

Total retail sales were estimated at $44.3 million in August, some $300,000 less than the $44.6 million that were earned in July, the Statistics Department said.

Most retail sectors, however, experienced a year-over-year increase in August.

The motor vehicle and service station sector, for example, reported the highest gain over last year -- 43.1 percent. This, the Statistics Department said, reflected an increase in demand for commercial vehicles and a return to average sales levels after poor sales in August of 1993.

The value of sales receipts in the general retail sector, meanwhile, rose a "modest'' 2.3 percent over last year, with electronic equipment, personal care products and clothing and footwear being the top sellers.

In the remaining sectors of the index, liquor store sales went up 11.4 percent over 1993, while food stores registered an increase in gross receipts of 1.9 percent.

After adjusting for the rate of inflation -- 2.3 percent in August -- the monthly volume of retail sales rose 5.7 percent above last year's level.

In a continuing pattern, residents who returned to the Island from vacation and business trips abroad reported overseas purchases of $2.78 million in August. While that figure represents a 2.1-percent decrease in comparison to last year, some $700,000 more were spent in August than in the previous month.

The retail sales index is currently based on a matched sample of reporting "store types'' whose gross receipts are estimated to represent about 65 percent of total retail sales in Bermuda.

The liquor store index includes sales to other retail outlets, but not to bars, clubs, hotels or restaurants.