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Content of the press release

The year-on-year growth in retail sales volume accelerated markedly in January 2000, according to the provisional figures on retail sales released today (March 14) by the Census and Statistics Department.

The value of total retail sales in January 2000, estimated at $17.6 billion, increased by 12% compared with January 1999. This was the first year-on-year increase in value of retail sales since October 1997. After discounting the effect of price changes over the period, the total retail sales volume recorded an increase of 20%.

The year-on-year increase in sales volume in January 2000 was across-the-board amongst all categories of consumer goods. Analysed by type of retail outlet and on a year-on-year comparison, sales of motor vehicles and parts recorded the largest increase, by 46% in volume. This was followed by sales of other consumer durable goods, by 33% in volume; commodities in supermarkets (not including supermarket sections of department stores), by 29%; furniture and fixtures, by 26%; commodities in department stores, by 24%; jewellery, watches and clocks, and valuable gifts, by 22%; footwear, allied products and other clothing accessories, by 20%; miscellaneous consumer goods, by 17%; and fuels, by 11%. Sales volume of wearing apparel grew by 9% and of food, alcoholic drinks and tobacco by 5%.

Affected by the timing of the Lunar New Year festival, retail sales tend to show greater volatility in the first two months of a year. As the Lunar New Year fell in early February this year, but in mid-February last year, more significant year-on-year increases in retail sales in some of the outlet types were observed in January this year.

On a seasonally adjusted basis, the volume of total retail sales increased by 3% in the three months ending January 2000 over that in the three months ending October 1999.

Commentary

A Government Secretariat spokesman said that the across-the-board surge in retail sales volume in January pointed to a further distinct rise in consumer demand, even allowing for some boosting effect from the seasonal surge in spending just before the Lunar New Year which came in early February this year. Concurrent with a general strengthening in consumer sentiment along with the continued pick-up in the economy, retailers of all types also ran heavy promotion to attract customers.

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 total retail sales figure for December 1999 and the provisional figure for January 2000. The value and volume indices of retail sales in November, December 1999 and January 2000 for all retail outlets and by type of retail outlet are also shown, with average retail sales from October 1994 to September 1995 taken as 100.

Table 2 shows the movement of total retail sales volume 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.

The report containing the analysis of the January 2000 results is now on sale at $3.00 per copy at the Government Publications Centre, G/F., Low Block, Queensway Government Offices, 66 Queensway; and the Publications Unit of the Census and Statistics Department, 19/F., Wanchai Tower, 12 Harbour Road, Wan Chai. Regular subscription can also be arranged with the Publications Sales Section of the Information Services Department (Tel.: 2842 8844). Internet users may order the publication through the website of the Information Services Department (Address : http://www.info.gov.hk/isd/book_e.htm).

Enquiries about the survey results may be directed to the Distribution and Services Statistics Section (1)A of the Census and Statistics Department (Tel. No. : 2802 1258).

End/Tuesday, March 14, 2000

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