Building material sales volume shot up by 43.8 in July, while the value increased by 46.3 per cent, according to the latest Retail Sales Index figures released by the Ministry of Economy and Labour.

This follows a 53.1 per cent plummet between January and May, and a rise of 4.3 per cent in June.

Construction sources attributed July’s increases to large projects, including hotel expansion.

“There has been a lot of construction going on since the middle of last year,” one source said. “At one point we noticed that all of the eight-inch block at SAL was cleared out completely.”

Meanwhile, economist Peter Everson said construction costs have risen by 25 per cent compared with previous years. He attributed this to the island’s quarries being fully developed.

“This was one of the biggest surprises for me this year,” Mr Everson said. “Having to import materials from overseas is obviously pushing up the cost of building new homes and renovating existing homes. It will impact commercial buildings such as hotels, offices and shops, as well as for the Government.”

Car sales volume also grew by 18.3 per cent. In value terms, the sales were 21 per cent above the levels recorded the previous July.

The report also showed a 3 per cent sales volume increase overall. In value, retail sales was up an estimated $113.7 million, which represented a 7.5 per cent rise in sales value year-to-year.

Five of the seven sectors recorded year-over-year volume index increases during this period including service stations sales by 2.3 per cent, apparel by 2.2 per cent, and in other sectors selling items such as household items, furniture, and electronics, there was a 1.5 per cent increase.

Meanwhile, the sales volume for food stores fell 2.7 per cent, and liquor store sales fell by 14.1 per cent.

Selected overseas declarations increased 13.9 per cent compared with 12 months prior.

• For the full Retail Sales Index statement, see Related Media

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July 2023 RSI Report.pdf