The volume of retail sales dipped by 0.2 per cent in March compared with last year, according to the latest statistics.

The construction industry was hardest hit by the slump, with sales of building supplies dropping 5 per cent compared with last year.

Grocery stores saw a dip in sales by volume by 1.1 per cent. Liquor and clothing sales also fell marginally.

However the motor industry did rise above the lowering tide, with car retailers reporting an increase of 1.7 per cent in sales, and service stations seeing sales nudge up by 0.1 per cent.

In the All Other Store Types sector — comprising stores selling household items, furniture, appliances, electronics, pharmaceuticals and tourist-related goods — there was a 0.6 per cent increase in sales volume.

Despite the drop in on-island consumer spending, the statistics suggest that residents are not going abroad to make their purchases.

Selected overseas declarations dropped by a massive 14.5 per cent compared with March 2023.

In value terms, retail sales increased by an estimated $96.6 million, which represented a 2.8 per cent rise in sales value year-to-year.

However after adjusting for inflation — measured at 3 per cent in March — the real value of sales fell.