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The Census and Statistics Department (C&SD) released the latest figures on retail sales today (November 7).
2. The value of total retail sales in September 2005, provisionally estimated at $15.7 billion, increased by 4.9% over a year earlier. After netting out the effect of price changes over the same period, the volume of total retail sales increased by 4.1% in September 2005 over a year earlier.
3. The revised estimate of the value of total retail sales in August 2005, at $16.5 billion, increased by 6.2% over August 2004, while the volume of total retail sales increased by 5.3%.
4. Taking the first nine months of 2005 together, total retail sales increased by 7.3% in value or 6.4% in volume over the same period a year earlier.
5. Analysed by type of retail outlet and comparing September 2005 with September 2004, the volume of sales of motor vehicles and parts increased the most, by 12.4%. This was followed by sales of electrical goods and photographic equipment (+12.2% in volume); commodities in supermarkets (+5.1%); commodities in department stores (+4.8%); wearing apparel (+2.9%); furniture and fixtures (+2.6%); jewellery, watches and clocks, and valuable gifts (+2.0%); miscellaneous consumer goods (+1.8%); and food, alcoholic drinks and tobacco (+0.4%).
6. On the other hand, the volume of sales of fuels decreased by 1.7% in September 2005 compared with a year earlier, while sales of miscellaneous consumer durable goods and of footwear, allied products and other clothing accessories also decreased, both by 0.5% in volume.
7. Based on the seasonally adjusted series, the volume of total retail sales decreased by 0.8% in the third quarter of 2005 compared with the preceding quarter.
8. These retail sales statistics are primarily intended to measure the sales receipts of goods sold by local retail establishments, for gauging the short-term business performance of the local retail sector. They cover consumer spending on goods but not on services. Moreover, they include spending on goods by visitors in Hong Kong but not by Hong Kong residents outside Hong Kong. Hence they should not be regarded as a comprehensive indicator of overall consumer spending. In this context, it may be noted that the share of consumer spending on services in overall consumer spending has been increasing over time.
9. Users interested in the trend of overall consumer spending should refer to the quarterly series of private consumption expenditure (PCE), which is a major component of the Gross Domestic Product. Compiled from a wide range of data sources, PCE covers consumer spending on both goods (purchased from all channels) and services by Hong Kong residents whether domestically or abroad.
Commentary
10. A Government Secretariat spokesman pointed out that the year-on-year growth in the overall volume of retail sales slowed down slightly in September. This notwithstanding, the volume of sales at many different types of retail outlets still recorded solid increases, particularly those for consumer durables such as motor vehicles and parts, and electrical goods and photographic equipment. While consumer sentiment may have turned more cautious following the successive rise in interest rates in recent months, the still strong overall economic performance and in particular the sustained increase in employment, the rise-back in labour income and the vibrant inbound tourism are expected to continue to support retail sales in the short term.
Further information
11. The volume of retail sales is derived from the value of retail sales after adjusting for price changes. The relevant components of the Consumer Price Index are used as price deflators.
12. Table 1 presents the revised figures on value index and value of retail sales for all retail outlets and by type of retail outlet for August 2005 and the provisional figures for September 2005, with average retail sales from October 1999 to September 2000 taken as 100.
13. Table 2 presents the revised figures on volume index of retail sales for all retail outlets and by type of retail outlet for August 2005 and the provisional figures for September 2005, with average retail sales from October 1999 to September 2000 taken as 100.
14. Table 3 shows the movement of the volume of total retail sales in terms of the year-on-year rate of change for a month compared with the same month in the preceding year based on the original series, and in terms of the rate of change for a three-month period compared with the preceding three-month period based on the seasonally adjusted series.
15. The report containing the analysis of the September 2005 results is now on sale at HK$8.0 per issue. Both print version and download version of the publication can be purchased online at the "Statistical Bookstore, Hong Kong" (http://www.statisticalbookstore.gov.hk). Download version of the publication can be purchased at 75% of its original price exclusively at the online Statistical Bookstore. Print version if purchased online is also offered a discount, at 85% of its original price at the Statistical Bookstore as well as the Government Bookstore (http://www.isd.gov.hk/eng/bookorder.htm).
16. Print version can be purchased through mail order by completing and returning an order form which can be downloaded from the C&SD's website (http://www.censtatd.gov.hk/eng/prod_serv/forms_index.html), or in person at the Publications Unit of the C&SD (Address: 19/F Wanchai Tower, 12 Harbour Road, Wan Chai; Tel.: 2582 3025).
17. Enquiries about the survey results may be directed to the Distribution Services Statistics Section of the C&SD (Tel.: 2802 1258).
Ends/Monday, November 7, 2005
Issued at HKT 16:16
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