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The Census and Statistics Department (C&SD) released the latest figures on retail sales today (July 3).
The value of total retail sales in May 2007, provisionally estimated at $20.5 billion, increased by 10.2% over a year earlier. After netting out the effect of price changes over the same period, the volume of total retail sales increased by 9.4% in May 2007 over a year earlier.
The revised estimate of the value of total retail sales in April 2007, at $19.2 billion, increased by 3.2% over April 2006, while the volume of total retail sales increased by 1.7%.
Taking the first five months of 2007 together, total retail sales increased by 8.3% in value or 6.2% in volume over the same period a year earlier.
Analysed by type of retail outlet and comparing May 2007 with May 2006, the volume of sales of motor vehicles and parts increased the most, by 26.6%. This was followed by sales of jewellery, watches and clocks, and valuable gifts (+21.8% in volume); electrical goods and photographic equipment (+17.9%); wearing apparel (+11.8%); footwear, allied products and other clothing accessories (+9.0%); commodities in department stores (+8.6%); furniture and fixtures (+6.3%); miscellaneous consumer durable goods (+5.4%); miscellaneous consumer goods (+4.7%); commodities in supermarkets(+4.3%); and fuels (+1.6%).
On the other hand, the volume of sales of food, alcoholic drinks and tobacco decreased by 0.5% in May 2007 compared with a year earlier.
Based on the seasonally adjusted series, the volume of total retail sales decreased by 2.6% in the three months ending May 2007 compared with the preceding three-month period.
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.
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
A Government spokesman said that the volume of total retail sales showed vibrant and broad-based growth in May, reflecting the generally upbeat consumer sentiment on the back of the favourable macroeconomic environment and also positive wealth effect from the buoyant stock market. The spokesman also pointed out that the strong pick-up in inbound tourism in May added further strength to retail sales in the month.
The spokesman believed that rising labour income and better job market should continue to uphold consumer sentiment. This, together with the further expansion of inbound tourism, would provide solid support to the retail business going forward.
Further information
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 deflators.
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 April 2007 and the provisional figures for May 2007, with average retail sales from October 2004 to September 2005 taken as 100.
Table 2 presents the revised figures on volume index of retail sales for all retail outlets and by type of retail outlet for April 2007 and the provisional figures for May 2007, with average retail sales from October 2004 to September 2005 taken as 100.
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.
Users can download the Report on Monthly Survey of Retail Sales free of charge at the Website of the C&SD (www.censtatd.gov.hk/products_and_services/products/publications/index.jsp).
Print version of this publication is available for sale at HK$9.0 per issue. Purchase can be done in person at the Publications Unit of the C&SD (Address: 19/F Wanchai Tower, 12 Harbour Road, Wan Chai; Tel: 2582 3025) or through mail order by returning a completed order form which can be downloaded from the C&SD's website (www.censtatd.gov.hk/products_and_services/other_services/provision_of_stat/mail_ordering_of_publications/index.jsp). Print version of this publication is also available for sale online at the Statistical Bookstore (www.statisticalbookstore.gov.hk) and the Government Bookstore of the Information Services Department (www.bookstore.gov.hk). Print versions if purchased online are offered a discount, at 85% of their original prices.
Enquiries about the survey results may be directed to the Distribution Services Statistics Section of the C&SD (Tel: 2802 1258).
Ends/Tuesday, July 3, 2007
Issued at HKT 16:15
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