Consumer retail spending bounced back by eight percent during February, driven by the rising cost of fuel and increased sales in building materials.

Government's latest Retail Sales Index report revealed that total retail sales recovered from a 0.4-percent drop in February 2007, up also from the previous month, January this year, when it declined 1.3 percent.

But Kristi Grayston, the chairman of the retail division of the Chamber of Commerce, admitted the results came as a big surprise to her considering the mood among retailers at present.

"Of the retailers I have been speaking to, nobody has been talking about a good February and it was certainly news to me," she said.

"There is an extra day in the month at that probably accounts for half of it, but is is nice to see an increase, mainly due to hardware, groceries and healthcare products.

"The apparel stores sales are still doing well, which just goes to show you what a difference it makes when you have got the space.

"For the most part, I am not hearing great stories from retailers at the moment, so I am surprised by the numbers — let's see what happens in March."

All sectors of the index reported buoyant sales activity, with the exception of motor vehicle stores, which experienced a seventh straight month of falling sales dating back to August 2007 and its biggest drop since October last year.

After adjusting for the annual retail sales rate of inflation, measured at 2.3 percent in February 2008, the volume for retail sales climbed by 5.6 percent, compared to a 2.6 percent loss at the same time during the previous year, while there was one more shopping day in February this year than the corresponding month last year.

Service stations led the way with double-digit sales gains, as revenue grew 14.3 percent over last February, attributed mainly to the 11.3 percent rise in the price of fuel. After adjusting for the inflation in fuel prices, the actual gains for the sector were three percent for the month.

Retailers in the building material industry reported a sales gain of 11.4 percent for the month of February, with higher levels of construction activity resulting in strong sales for building and hardware vendors, and gross revenue flows for the sector regaining strength after weak sales performances in the two months prior.

Apparel stores registered their 19th consecutive month of sales gains in February, advancing 9.8 percent, as more floor space and increased product lines continued to impact favourably on the sector.

Food store sales were also on the up at 8.2 percent over the last year, due in part to a 3.3-percent rise in food prices during the same period, with all other store types, such as furniture, appliance, electronics, pharmaceutical and personal care supply retailers experiencing positive sales gains in February, as gross revenue flows advanced 10.2 percent, driven by strong sales in health and personal care products.

But motor vehicle sales fell a further 4.3 percent for the month, following a 22.9-percent decline in January 2008, accounted for in part by weaker demand for vehicle models that were popular in 2007.

Overseas spending increased 5.7 percent or $230,000 above the previous year, with residents returning to the Island declaring overseas purchases of goods valued at $4.26 million, and overseas spending representing five percent of total retail sales for February 2008, slightly lower than the 5.1 percent recorded for the same period last year.