combined with an increase in the amount of cash circulating on Bermuda's streets is a strong indication of a recovery from the recession.

Last week, the Bermuda Monetary Authority announced that the 1993 Christmas dollar supply was the highest ever recorded dollar supply figure to date.

The BMA's deputy general manager Mrs. Marcia Woolridge-Allwood said: "The money supply is an excellent indicator of the health of the domestic economy.

Although merchants agree the end of the recession is in sight they are quick to point out that business is still nowhere near as good as it was four years ago.

Trimingham Bros. president Mr. Eldon Trimingham said that sales have improved this year compared to last year. "There are indications that people are a little more confident about the economy and the future.

"It's no great thing. Things are still a long way behind how things were three or four years ago. We have to remember there are a few thousand less people on the Island, but there are indications of a turnaround,'' added Mr.

Trimingham.

President of H.A. & E. Smith Mr. Roger Davidson said business has been reasonably good, but he too was wary of becoming overly optimistic.

"Business is up from last year, but's that nothing special because last year business was appalling,'' he said. "Generally speaking, given the condition of the market we are satisfied with the figures.'' Sen. Grant Gibbons of Gibbons Company said that although an increase in sales was encouraging, but added: "The last few years have been poor, but there has been a little bit of improvement this year,'' he said.

The increase in sales in city shops reflects the amount of cash circulating through Bermuda's shoppers.

Sen. Gibbons said: "Customers are looking to maximise the dollar. They are looking for value, which the merchants are trying to give them.'' But this year's improvement in retail sales has not been confined to the larger department stores - smaller, specialty stores have reported encouraging figures.

Mr. Tommy Dickinson of Astwood-Dickinson's reported an excellent Christmas in terms of sales. He claimed it has been the best in four years.

However Mr. Dickinson displayed some of the same hesitation as his fellow shopkeepers.

"We are very hopeful that 1994 will be a positive year for the retail trade.

It bodes well, but you just don't know how it will develop,'' he said.

Mr. Douglas Patterson, owner of the Front Street Store, Makin' Waves, noted only a slight increase in sales this year, but he too is looking forward to next year to improve sales.

"I think the recession is over,'' he said. "It's been a long three years and we are looking to next year to get better.'' In general, central Hamilton shops have seen an improvement in retail business for the whole year, as well as the Christmas season.

North Hamilton stores have also reported excellent sales for the year. Mr.

Michael Wells, owner of Scorpio Records on Court Street said business has been great and believes things will get even better in the new year.

Mrs. Annie Young who runs True Reflections on Court Street, said the shop has been continuously busy.