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Business receipts in value terms of most of the major service industries showed decreases of different magnitudes in the fourth quarter of 2008 when compared with the fourth quarter of 2007, according to the provisional business receipts indices released today (March 12) by the Census and Statistics Department (C&SD).
The financial market of Hong Kong was seriously hit, following the onset of the global financial tsunami in September 2008. Comparing the fourth quarter of 2008 with the fourth quarter of 2007, the financing (except banking) and banking industries both recorded sharp declines in business receipts. The former dropped by some 58%, largely attributable to the plunge in the stock market; whereas the latter dropped by some 45%, mainly due to the reduction in non-interest income. Besides, the high base of comparison caused by the robust performance in the fourth quarter of 2007 also contributed to the year-on-year declines in both industries.
Alongside the downturn of the residential property market, the real estate industry also recorded a significant decline in business receipts (-27.2%) in the fourth quarter of 2008 when compared with the fourth quarter of 2007. This was followed by the insurance industry (-19.3%), in which the life insurance business contracted substantially amidst the worsening economic situation.
On the other hand, the major service industries that recorded increases in business receipts included restaurants (+8.3%), storage (+5.0%) and business services (+2.6%).
Analysed by service domain, business receipts of the computer and information services domain dropped by over 10% in the fourth quarter of 2008 when compared with the fourth quarter of 2007. The decline was mainly attributable to the fall in import and export of computer and related products. On the other hand, the business performance of the tourism, convention and exhibition services domain remained almost unchanged during the period.
Comparing the fourth quarter of 2008 with the third quarter of 2008, and bearing in mind that this comparison might be affected by seasonal factors, business receipts of most service industries recorded decreases of different magnitudes. The financing (except banking) (-27.0%) and banking (-25.5%) industries remained to be the two industries with the weakest performance. On the other hand, a notable growth, albeit markedly moderated as compared to the fourth quarter of earlier years, was recorded in the hotels industry (+22.4%) as the fourth quarter is usually a high season for hotels.
For 2008 as a whole, given the positive growth in the first three quarters, many of the major service industries recorded increases in business receipts when compared with 2007. A double-digit growth was recorded in the restaurants industry (+13.1%), mainly due to price increases. This was followed by wholesale and retail (+9.6%) and communications (+8.3%) industries.
On the other hand, notable declines were recorded in the financing (except banking) (-19.6%) and banking (-16.9%) industries for the whole year of 2008 when compared with 2007.
Analysed by service domain, business receipts of the tourism, convention and exhibition services domain rose by 9.1% in 2008 when compared with 2007, mainly due to the growth in the first three quarters in 2008. Similarly, business receipts of the computer and information services domain were up by 5.6%.
Table 1 presents the provisional business receipts indices for selected service industries and service domains for the fourth quarter of 2008, while Table 2 shows the time series of the business receipts indices for the recent five quarters. Business receipts indices for the whole year of 2008 are also included in Table 2.
The revised business receipts indices for the fourth quarter of 2008 and the whole year of 2008 will be released at the website of C&SD (http://www.censtatd.gov.hk/hong_kong_statistics/index.jsp) and relevant publications of the C&SD starting from April 24, 2009.
Data for compiling the business receipts indices are mainly based on the Quarterly Survey of Service Industries conducted by the C&SD, supplemented by relevant data provided by the Hong Kong Monetary Authority and the Hong Kong Tourism Board.
A service domain differs from a service industry in that it comprises those economic activities straddling different industries but are somehow related to a common theme. It may include all economic activities carried out by all establishments in a service industry that is closely related to the domain. For a service industry that is less closely related, however, only a portion of the establishments in the industry or even only part of the economic activities of the establishments is related to the domain. Taking the tourism, convention and exhibition services domain as an example, it includes all services of all hotels and travel agents; and some (those involving visitors as customers) but not all of the services of restaurants, retailers and transport operators.
Details of the compilation method of the business receipts indices are given in the report "Quarterly Business Receipts Indices for Service Industries, Fourth Quarter 2008".
Users can download the report free of charge at the website of the C&SD (www.censtatd.gov.hk/products_and_services/products/publications/statistical_report/commerce_and_industry/index.jsp).
Print version of the report is available for sale at HK$11 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 the report is also available for sale online at the Government Bookstore of the Information Services Department (www.bookstore.gov.hk).
Enquiries about the report can be directed to the Business Services Statistics Section of the C&SD at telephone number 2802 1277 or email address (business-receipts@censtatd.gov.hk).
Ends/Thursday, March 12, 2009
Issued at HKT 16:31
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