the retail industry for the second straight month.

A further sign the economy was rebounding from recession was an increase in real estate sales, especially of luxury homes.

The Tourism Ministry also announced that visitor arrivals increased by 8.3 percent in June compared to 1992.

Auto sales rose nearly 25 percent in May. The increase was partly due to the removal of the waiting period for people purchasing new replacement cars after selling their old ones, the Finance Ministry said.

Overall turnover in the retail industry in May was estimated at $41.9 million, an eight percent increase compared to last May.

All sectors of the retail industry enjoyed sales increases. And even after adjusting for inflation, the volume of retail sales remained above the previous year's level for the second consecutive month -- a 4.9 percent increase compared to last year.

But residents' purchases abroad also increased 17.2 percent to a total of $1.98 million compared to last May.

Purchases of electronic and photographic equipment, computer hardware and software, toys and sporting goods contributed to the increase.

Stronger domestic demand for certain goods such as clothing, shoes, and furniture was detected, a Ministry spokesman said.

And food and liquor stores posted annual sales increases of 1.5 percent and 8.8 percent.

The spokesman said there had seemed to be a pick-up in sales at stores catering mostly to visitors, reflecting the strong rise in air and cruise arrivals in May.

The June Tourism figures showed air visitor arrivals continued their upward trend in June improving by 2.8 percent US are arrivals were up 3 percent to 41,387, 29.6 percent from Canada to 2,630, and 5.7 percent from the United Kingdom to 1,830. Total arrivals for the year so far up 8.8 percent to 247,362.

Arrivals from Europe in May were down a worrying 51.3 percent to 418.

Tourism Minister the Hon. C.V. (Jim) Woolridge said he believed the traditional market would continue to be the United States.

But he said the Ministry planned to expand advertising and promotions from Ontario into Quebec and Halifax.

Cruise visitors in June increased by 20.9 percent to 25,060.

But length of stay of all licensed guest properties -- a better indicator of visitor spending than air arrivals -- fell from 5.4 to 5.3 nights while bed nights in guest properties slipped 0.5 percent for the month. They are up 1.7 percent for the year.

President of the Chamber of Commerce Real Estate Division Mr. Thomas Moss said there was "no question'' property sales were increasing, particularly in the "$600,000 to million executive'' range.

Properties under that range were "dragging the market'', he said.