stores reported a further drop in sales.

The October retail price index showed spending in the general retail sector fell five percent after adjustment for inflation with gross turnover estimated at $38.8 million.

The fall reflected a fall in tourist demand -- which reflected the drop in visitor arrivals for the month -- and increased purchases abroad by residents.

Finance Minister Grant Gibbons said the general retail sector was driven by visitor expenditure.

But he explained that it was not just the drop in visitors which affected the retail sector's figures, it was also the drop in what the average visitor spent on the Island.

Chamber of Commerce sales division chairman Ms Nancy Gosling said the drop was a concern but was expected because of the continued drop in visitor arrivals.

She warned that November's figures would probably be no better.

Dr. Gibbons said the closure of the Bases would have also affected the figures because there were no military personnel putting money into the economy any longer.

Only liquor store sales showed an increase, up 0.9 percent on the previous year while all other sectors of the retail industry reported a decrease in their gross revenue.

Petrol and vehicle sales fell 2.5 percent overall despite petrol sales surpassing the previous year's level and food store sales slipped by 1.2 per cent from the same time last year.

Pearman Watlington's general manager Mr. William McNiven told The Royal Gazette that he had no idea why vehicle sales were down for October but added he expected sales for November to also be down.

But he said sales for December had picked up and "were doing pretty good'' at the moment.

Dr. Gibbons said another factor affecting the month's figures was that there was one less Saturday this October compared to October, 1994.