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Content of the press release
The Census and Statistics Department released the latest figures on retail sales today (July 7).
2. The value of total retail sales in May 2003, provisionally estimated at $13.8 billion, decreased by 11.1% compared with May 2002. After netting out the effect of price changes over the same period, the overall volume of retail sales decreased by 7.4% in May 2003 from a year earlier.
3. The revised estimate on the value of total retail sales in April 2003 was $12.7 billion, down by 15.2% in value or 12.2% in volume from a year earlier.
4. Taking the first five months of 2003 together, retail sales declined by 6.8% in value or 4.4% in volume as compared to a year earlier.
5. 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.
6. 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.
7. Analysed by type of retail outlet and comparing May 2003 with a year earlier, sales of jewellery, watches and clocks, and valuable gifts declined the most, by 36.6% in volume. This was followed by sales of motor vehicles and parts (by 16.8% in volume); wearing apparel (13.7%); fuels (13.2%); miscellaneous consumer goods (5.9%); commodities in department stores (5.4%); and food, alcoholic drinks and tobacco (1.3%).
8. On the other hand, sales of miscellaneous consumer durable goods increased by 18.4% in volume in May 2003 over a year earlier. Sales of electrical goods and photographic equipment and of footwear, allied products and other clothing accessories increased by 4.8% and 3.8% respectively in volume, while sales of furniture and fixtures and of commodities in supermarkets also increased, by 0.6% and 0.1% respectively in volume.
9. Based on the seasonally adjusted series, the overall volume of retail sales decreased by 7.5% in the three months ending May 2003 as compared to the preceding three-month period.
Commentary
10. A Government Secretariat spokesman noted that the volume of retail sales, after the double-digit fall in April, recorded a lesser decline in May 2003. This occurred notwithstanding an even larger decline in incoming visitors in the month, and was underpinned by local consumer sentiment getting better as the local SARS situation continued to improve. The strong promotion efforts of the retail trade also helped.
11. Amongst the various types of retail outlets, sales of miscellaneous consumer durable goods picked up most distinctly, to a double-digit rise in May, partly due to the increased sales of computers and related parts. Sales of electrical goods, footwear and furniture all reverted to increase. Sales of Chinese drugs and herbs, and of medicines and sanitary products registered further increases. Also, the declines in sales of clothing, jewellery and watches, motor vehicles, and commodities in department stores narrowed.
Further information
12. 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.
13. Table 1 (text version of table 1) presents the revised value index of retail sales for all retail outlets and by type of retail outlet for April 2003 and the provisional figures for May 2003, with average retail sales from October 1999 to September 2000 taken as 100. The retail sales figures for all retail outlets and by type of retail outlet for April and May 2003 are also shown.
14. Table 2 (text version of table 2) presents the volume index of retail sales for all retail outlets and by type of retail outlet for April and May 2003, with average retail sales from October 1999 to September 2000 taken as 100.
15. Table 3 (text version of table 3)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.
16. The report containing the analysis of the May 2003 results is now on sale at $8 per copy. The above publication and other publications of the Census and Statistics Department can be purchased in person from :
(i) Government Publications Centre, Ground Floor, Low Block, Queensway Government Offices, 66 Queensway, Hong Kong (Tel.: 2537 1910); or
(ii) Publications Unit of the Census and Statistics Department, 19th Floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong (Tel.: 2582 3025).
17. Internet users may purchase the publications online at the "Statistical Bookstore, Hong Kong" (Address: http://www.statisticalbookstore.gov.hk) with payment made instantly. Softcopies of the publications purchased are available for immediate downloading while hardcopies purchased will be delivered by mail. Subscription to regular publications and advance ordering of upcoming releases are also available. The Statistical Bookstore is hosted on the ESD portal (Address: http://www.esd.gov.hk) together with other public services.
18. A mail order form for ordering or arranging subscription to hardcopies of publications is available in most publications of the Census and Statistics Department. It may be completed and sent back together with a cheque or bank draft covering all necessary cost and postage. The order form is also available for downloading from the website of the Department (Address: http://www.info.gov.hk/censtatd/eng/service_desk/forms_index.html).
19. 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/Monday, July 7, 2003
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