Overseas spending by locals increased for the tenth straight month in August, but at the slowest pace since December, 2003 according to the latest Retail Sales Index.

The figures compiled by the Department of Statistics show that overseas spending in August increased by nearly 15.2 percent to nearly $6.4 million from the same period last year.

While such spending is still on the increase, it is significantly lower than in January through July this year when average overseas spending rose 37.6 percent.

The number of residents returning to the Island who declared purchases climbed 9.8 percent in August - another increase that was lower than the double digit declarations recorded in the previous months of 2004. Resident spending abroad accounted for 12.5 percent of all purchases during the month, compared to 11.5 percent last year.

The Department of Statistics said the total volume of retail sales increased during the month of August as spending levels outpaced the rate of inflation. Retail outlets sold $44.9 million in goods, up 6.2 percent from August of last year. After adjusting for the rate of inflation, which measured 3.8 percent in August, real sales climbed 2.3 percent over the same period.

There were 26 shopping days during the month, one more than in August 2003.

Retailers in every sector registered higher sales, with the exception of apparel stores which recorded a slight decline of 0.3 percent.

Motor vehicle dealers and building and hardware suppliers posted double-digit sales gains of more than 25 percent.

The Department of Statistics said: "Motorists comprised a key consumer group during the month, boosting sales of cars, cycles and automotive accessories.

Additions to stock levels helped spark an increase in consumer demand for new vehicle models. As a result, motor vehicle dealers recorded a jump in gross receipts of 26 percent.

"Another factor contributing to the rise in sales was a weaker than normal sales month last year. In August 2003, dealerships experienced low stock levels, with some car models unavailable for purchase."

Building and hardware outlets also experienced significant sales growth in August with a 25.5 percent increase.

The Department of Statistics said that "major developments and other new construction projects stimulated demand for building material and supplies."

Food store receipts moved up 4.3 percent over the same period last year while gross sale for service stations were 2.3 percent higher than in August 2003.

Liquor stores registered a 3.9 percent gain in the sales of beer, wine and spirits during the month of August.

The all other store type sector reported modest sales growth of 1.4 percent. Consumers spent more on appliances and electronics compared to August 2003, while sales of pharmaceutical and personal care products increased over the same period. Furniture stores and marine supply outlets also reported gains in gross revenue flows during the month.