Consumer spending slows in November
figures released yesterday by the Department of Statistics.
While car dealerships continued to register strong sales growth, the liquor store and general store categories suffered declines.
Overall retail sales were flat in November compared to November 1997 after showing good growth throughout the past year.
Retailers sold an estimated $45 million worth of goods in November, an increase of 2.3 percent over the same month in 1997. After adjusting for a 2.2 percent year-over-year inflation rate, the increase was only 0.1 percent in real terms.
During the previous 12 months retail sales growth ranged between 2.3 percent and 11.3 percent after adjusting for inflation.
In November car dealerships registered strong sales of new vehicles.
After adjusting for inflation sales in the motor vehicle dealers and service stations sector of the index were 22 percent higher in November 1998 than in November 1997. Sales at petrol stations were down compared to a year ago, the department reported.
Statisticians attributed the large increase to deliveries of new vehicles which allowed consumers more choice in the market.
Meanwhile, liquor merchants saw their sales decline by 8.2 percent in real terms compared to a year ago.
Food sales, which have been increasing by double digit rates since August, grew by 2.7 percent in November.
In the general store category sales declined by 6.7 percent in real terms.
"Furniture sales declined sharply while appliance sales were also down,'' the Department reported.
"Stores that cater to tourists continued to experience declining sales, but neither shops catering to local tastes or department stores fared any better.
In contrast, sales at pharmacies were up.'' Gross sales to November were estimated at $489.6 million, four percent more than in the same period in 1997.
The retail sales index is based on a matched sample of reporting store-types whose retail sales are estimated to account for 66 percent of the total sales in Bermuda.
Since April 1998 the Department has been unable to report figures for overseas purchases declared by returning residents, an important indicator of loss of business by the local market.
The delay was due to a switch over from a manual to a computerised reporting system at the airport.
The Statistics Department is currently reviewing the figures for accuracy and will then release them.