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The Census and Statistics Department (C&SD) released the latest figures on retail sales today (October 2).
The value of total retail sales in August 2007, provisionally estimated at $20.6 billion, increased by 15.0% over a year earlier. After netting out the effect of price changes over the same period, the volume of total retail sales increased by 12.5% in August 2007 over a year earlier.
The revised estimate of the value of total retail sales in July 2007, at $21.3 billion, increased by 14.3% over July 2006, while the volume of total retail sales increased by 12.1%.
Taking the first eight months of 2007 together, total retail sales increased by 10.6% in value or 8.5% in volume over the same period a year earlier.
Analysed by type of retail outlet and comparing August 2007 with August 2006, the volume of sales of electrical goods and photographic equipment increased the most, by 37.7%. This was followed by sales of jewellery, watches and clocks, and valuable gifts (+31.8% in volume); footwear, allied products and other clothing accessories (+19.5%); motor vehicles and parts (+15.7%); miscellaneous consumer durable goods (+10.3%); commodities in department stores (+8.7%); wearing apparel (+8.1%); miscellaneous consumer goods (+7.5%); furniture and fixtures (+7.0%); commodities in supermarkets (+5.6%); and fuels (+4.9%).
On the other hand, the volume of sales of food, alcoholic drinks and tobacco in August 2007 remained virtually unchanged compared with a year earlier.
Based on the seasonally adjusted series, the volume of total retail sales in the three months ending August 2007 increased by 8.2% 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 pointed out that the volume of retail sales continued to show vibrant and broad-based growth in August. The spokesman explained that this was supported by rising incomes and better job prospects, which enhanced people's willingness to spend. The overall thriving stock market in August despite some market volatilities arising from the US sub-prime mortgage turbulence, together with the further expansion in inbound tourism, also helped.
The spokesman believed that consumer sentiment remains upbeat, on the back of the strong economic fundamentals, and would lend 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 July 2007 and the provisional figures for August 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 July 2007 and the provisional figures for August 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).
Enquiries about the survey results may be directed to the Distribution Services Statistics Section of the C&SD (Tel: 2802 1258).
Ends/Tuesday, October 2, 2007
Issued at HKT 16:16
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