The retail sales index rose 2.7 per cent in July compared to the previous year.

After adjustment for inflation, which was 1.4 per cent in July, the volume of retail sales was up 1.3 per cent.

The figures mark the eighth successive monthly increase.

And motor vehicle retailers again notched up major increases with a 36.6 per cent leap in sales.

But clothing sales suffered the biggest drop — down 4.7 per cent.

The latest retail sales index figures also reveal that residents spent a total of $102.1 million in July, including declared overseas purchases of $4.5 million, the same as July 2014.

Gross receipts of building material stores went up by 3.5 per cent, with the increase attributed to higher demand for home improvements. After adjustment for inflation, the figure stood at 2.3 per cent.

Receipts from sales of food also increased, up 3.1 per cent, although sales revenue for liquor stores dropped by 1.8 per cent for July.

The sales volume for food stores remained unchanged, while liquor sales dropped 2.5 per cent.

Sales receipts at service stations were up 1 per cent compared to July last year, but the 5.3 per cent increase in sales volume was offset by a 4.1 per cent decline in the price of fuel.

Sales receipts for all other stores fell 2.5 per cent, with boat and marine stores sinking most, down 24.6 per cent.

Sales at tourist stores fell 6.8 per cent, while sales of furniture, appliances and electronics slipped 1.3 per cent.

But gross receipts at pharmacies were up by 1.5 per cent.

After adjustment for inflation, sales at all other store types fell by 2.7 per cent.

The drop in clothing sales was put down to decreased demand, partially offset by a 1.9 per cent increase in the price of clothes.