Retail sales produced their smallest increase in four months in July as the Belco blackout wreaked havoc with normal shopping patterns.

The value of retail sales rose 4.9 percent compared to July, 2004 as turnover increased from $52.1 million to $54.7 million, after taking into account the 2.8 percent inflation rate for the month, the volume of retail sales was up 2.1 percent ? the smallest increase since volume of sales fell by 0.1 percent in February.

However, July sales were disrupted by the Belco fire and blackout on July 14, which shut down parts of Hamilton for three days.

Grocery stores recorded a 10.6 percent jump in sales as panic buying took place in preparation for a prolonged blackout. Gas stations also saw a six percent increase, again caused by consumers rushing to buy gas for their cars and generators.

Sales also increased as gas prices had increased 11 percent year over year.

However, these increases were offset by a 5.6 percent drop in apparel sales. This may have been caused in part by the closures of stores due to the blackout, but the Department of Statistics said sales were also affected by the close-out sale at Trimingham?s, which forced down sales at other stores.

The Index was also held down by the apparent end of the construction boom which had seen hardware and other building supply businesses record soaring sales between April and June. In July, sales slumped 11.2 percent compared to the same month in 2004.

Overseas shoppers also seemed to return to their spendthrift ways, as returning residents reported buying $4.82 million worth of goods ? a 21.4 percent increase compared to July, 2004.

This came after shoppers recorded a 3.6 percent decrease in June and single digit percentage increases dating back to March.