Retail sales in Bermuda are on the up, according to the latest figures released by Government.

Sales rose across the board 6.6 percent to an estimated $99.1 million in July, representing the third largest growth of the year, with the biggest increase of 10.1 percent coming in March.

The spending level was $6.1m above the retail sales recorded for July last year.

The July 2007 index stood at 110.8 index points following a modest 0.8 percent gain for the month of June.

Among the biggest gainers were car sales, construction activity, gas sales and overseas spending, but, on the flipside, liquor sales fell 0.2 percent, going into reverse for only the second time this year.

After adjusting for the annual retail sales rate of inflation, measured at 2.7 percent in July, the volume of retail sales edged up 3.8 percent, reflecting an overall increase in the total quantity of goods sold in the retail sector for the month.

Car salesmen experienced double-digit gains in sales in July, reporting an 11.9 percent rise compared with figures at the same time last year.

Overall, July has been the strongest month for vehicle sales since January, due primarily to higher demand for popular models in stock.

Retailers in the building material and hardware sector, meanwhile, reported a 9.9 percent sales increase for July as higher levels of construction activity in the economy resulted in strong sales for building and hardware vendors, the key suppliers to the construction industry.

Another encouraging sign was gross revenue flows for the sector regaining their strength following a poor start to the year.

Service stations also reported a 10.5 percent gain in gas sales, with part of the rise being attributed to the 2.2 percent increase in the cost of premium and mixed fuel.

Similarly, service stations with extended opening hours saw a boost in their sales revenue.

Elsewhere, retailers in the furniture, appliance, electronic, pharmaceutical and personal care supplies sectors experienced growth in aggregate sales after a weak sales performance during the previous month.

Gross revenue flows for all of these sectors advanced 8.6 percent over July, due mostly to strong consumer demand for household furniture and furnishings.

Residents returning to the Island from business trips and holidays declared overseas purchases of about $5.1m in July, with the level of spending estimated at $300,000, 6.1 percent higher than that reached for the period in 2006.

Combined local and overseas retail sales totalled $104.2m in July, $6.4m higher than the previous year and accounting for 4.9 percent of total retail sales, the same as for July 2006.

New sporty VW set to boost car sales further (see page 11)