Consumer Spending Plunges

December 14, 2010

Spending among Bermuda consumers fell sharply in October compared to the same month last year, down to $84.1 million from $9.1.7 million — a drop of $7.6 million or 8.3 percent. After adjustment for inflation, the real year-over-year decline was 10.8 per cent.

The Department of Statistics today (Dec. 14) reported consumer spending was down in all areas of the retail sector except for service stations, which recorded a marginal increase in earnings. October marked the tenth successive month of 2010 when consumer spending has fallen.

Given the economic backrop of an ongoing recession and increasing unemployment, Bermuda consumers continued to cut their spending in October on everything from new automobiles (down 19.4 percent on a year-over-year basis), clothing (down 12 percent) and food and liquor (down 0.9 percnt and 5.4 percent respectively).

Bermuda residents returning from trips abroad declared $5.6 million worth of goods during October 2010. This represented an increase of 9.8 percent as compared to October, 2009, with a half-million dollars more spent on overseas purchases.

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Comments (5)

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  1. nameless says:

    This is approximately as shocking as water being wet.
    And yet the Minister of Finance who holds the responsibility for this is now the one in charge of everything…

  2. Not Surprised says:

    You know, if shops were to have big sales they might see an increase in shoppers, as this was proven on the “Black Friday ” attempt. Alot of stores had loads of people in the doors. It all helps. I just bought Bermuda and paid $75 for a robe. I also have just gone online and see that I could have purchsed the same one at retail online, shipped it and paid duty and would have still come under $75.00.

    Would have loved it if shops offered discount and sales to help us all. You scratch our backs we scratch yours. We would happily shop locally because we would feel better and support our local retailers. I shopped Bermuda, and have the sinking feeling in my stomach that I’ve spent way too much for my product. :-(

  3. Sara says:

    This will continue for the next couple of years, things are not going to get better anytime soon. And the smart people are saving their money, not spending.

  4. Uncle Ruckus says:

    Well if they continue to take away parking in the city of Hamilton and raise the cost of parking in the few areas they have left it will stay this way. Gibbons Company is the only real store worth shopping in anyway. Majority of these stores don’t have websites, don’t allow you to return items, cost way too much and the list goes on.

  5. Brasco says:

    The Corp. Of Hamilton and Ministry of Finance don’t seem to be in sync with our retail stores.