Consumer spending continues to fall
Consumer retail spending was down in November last year with car sales plummeting by almost 40 percent, according to the Retail Sales Index released this morning.Meanwhile, sales revenues for food stores, building materials and service stations all saw an increase during November last year, compared to the year before.Consumers spent an estimated $81.5 million on goods and services last November, representing a decrease of $2.3 million or 2.7 percent over the same period last year.Building materials recorded the strongest growth with an increase in sales of ten percent, along with service stations, up 2.7 percent, and food stores, up 3.4 percent.Building suppliers say their sector’s increase was driven by demand for building supplies for both residential renovations and ongoing commercial construction projects such as the redevelopment of the King Edward VII Memorial Hospital. Service station retailers attributed their increase to the 11 percent rise in the cost of gasoline.Car dealers saw the largest decrease in sales, 38.8 percent seeing a drop in both car sales (down 51.6 percent) and bike sales (down 7.7 percent).Sales revenue for clothing, accessories and jewellery dipped 7.1 percent during November. According to retailers, the traditional boost provided to November’s apparel sales from consumer purchases of winter school uniforms had shifted, occurring instead during the month of October.Residents returning to the Island declared overseas purchases of goods valued at $5.9 million during November 2011. This was 25.3 percent lower than the $7.9 million declared in November 2010.Combined local and overseas spending totaled $87.4 million.