Residents splashed $58.9 million in retail sales in July, $3 million more in spending than last year, particularly on building materials and hardware according to the Retail Sales Index released by the Department of Statistics on Friday

This spending level was an increase of 5.4 percent or $3 million above the $55.9 million in retail sales recorded for July 2005.

The July 2006 index stood at 177.9 index points. The 5.4 percent gain in retail sales in July followed a sizeable decline of 5.7 percent in June, representing a ten year low in retail sales.

Residents returning to the Island from business and vacation trips declared overseas purchases of roughly $4.8 million during the month of July 2006.

This level of spending was roughly $30,000 or 0.6 percent lower than the level of spending reached in July 2005, marking the second decline in overseas spending this year.

Combined local and overseas retail sales totalled $63.7 million in July 2006, $3 million higher than July 2005.

Overseas spending represented 7.5 percent of total retail sales in July, a slightly lower proportion than the 7.9 percent recorded last year.

Meanwhile, all sectors in the index reported positive sales this month with the exception of apparel and liquor stores.

The main contributors to the strength in the Retail Sales Index in July were retailers in the building materials and other store types sectors.

After adjusting for the annual rate of inflation, measured at 3.6 percent in July 2006, the volume of retail sales advanced 1.8 percent, reflecting an overall increase in the total quantity of goods sold in the retail sector for the month.

There were 26 shopping days during the month, the same as in July 2005. However, due to an Island wide electricity blackout last year, consumers were limited to 23 shopping days, as several retailers were forced to remain closed for up to three days until power was restored.

Retailers in the building material and hardware sector reported a sales gain of 28.2 percent for the month of July.

This marks the fifth month of double digit sales increases in 2006.

Higher levels of construction activity in the economy led to strong sales for building and hardware vendors, the key suppliers to the construction industry.

Gross receipts for food stores increased 4.7 percent in July 2006. Gross receipts for the food storessector have made positive monthly gains since September 2002.

Meanwhile, households experienced a 1.7 percent increase in the price of food when compared with July 2005.

Retailers of motor vehicles experienced positive sales after a 21.7 percent sales decline registered last month.

Dealers reported a sales gain of 6.4 percent in July 2006.

The expansion in sales can be directly attributed to higher stock levels and strong consumer demand for vehicle models currently in inventory.

The all other type stores sector which includes retailers of furniture, appliances, electronics and pharmaceuticals have consistently experienced positive sales gains since November 2004.

Gross revenue flows for this sector advanced a further 10.9 percent during the month.

Liquor store sales declined for the first time since January of 2005 when sales fell 4.0 percent.

Sales in this sector decreased two percent in July 2006.