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Content of the press release
The Census and Statistics Department released the latest figures on retail sales today (October 7).
2. The value of total retail sales in August 2003, provisionally estimated at $14.7 billion, increased by 1.2% compared with August 2002. After netting out the effect of price changes over the same period, the overall volume of retail sales increased by 3.0% in August 2003 from a year earlier.
3. The revised estimate on the value of total retail sales in July 2003 was $14.6 billion, down by 2.5% in value or 0.3% in volume from a year earlier.
4. Taking the first eight months of 2003 together, retail sales declined by 5.3% in value or 2.8% 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 August 2003 with a year earlier, sales of electrical goods and photographic equipment increased the most, by 18.9% in volume. This was followed by sales of furniture and fixtures (by 12.4% in volume); miscellaneous consumer durable goods (9.8%); food, alcoholic drinks and tobacco (8.0%); miscellaneous consumer goods (7.3%); footwear, allied products and other clothing accessories (3.3%); jewellery, watches and clocks, and valuable gifts (2.3%); and wearing apparel (1.8%).
8. On the other hand, sales of motor vehicles and parts and of fuels decreased by 24.3% and 8.4% respectively in volume in August 2003 compared with a year earlier, while sales of commodities in department stores and of commodities in supermarkets also decreased, by 1.5% and 0.7% respectively in volume.
9. Based on the seasonally adjusted series, the overall volume of retail sales increased by 6.3% in the three months ending August 2003 as compared to the preceding three-month period.
Commentary
10. A Government Secretariat spokesman noted that retail business picked up distinctly further in August 2003, with the volume of retail sales resuming a year-on-year increase after declining for six consecutive months since February this year. Apart from the continued recovery in local consumer demand from the earlier SARS impact, retail sales were also bolstered by the marked rebound in visitor arrivals, particularly those from the mainland of China upon the launch of the "individual visit" scheme since late July.
11. The spokesman further noted that the improvement in retail sales in August was almost across-the-board. Sales of electrical goods and photographic equipment, foodstuffs, and miscellaneous consumer goods picked up to a faster increase in August, with a particularly strong rise for electrical goods and photographic equipment. Concurrently, sales of furniture and fixtures, jewellery and watches, clothing, and footwear turned up to increase, with a particularly sharp rebound for furniture and fixtures. Sales of miscellaneous consumer durable goods maintained notable growth. Sales of commodities in supermarkets and in department stores both had lesser declines. On the other hand, sales of motor vehicles continued on a significant decline.
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) presents the revised value index of retail sales for all retail outlets and by type of retail outlet for July 2003 and the provisional figures for August 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 July and August 2003 are also shown.
14. Table 2 (text version)presents the volume index of retail sales for all retail outlets and by type of retail outlet for July and August 2003, with average retail sales from October 1999 to September 2000 taken as 100.
15. Table 3 (text version)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 August 2003 results is now available, in both hardcopy and softcopy (in PDF format), for sale at HK$8. It can be purchased online at the "Statistical Bookstore, Hong Kong" (http://www.statisticalbookstore.gov.hk) or by returning a completed order form which can be downloaded from the C&SD's website (http://www.info.gov.hk/censtatd/eng/prod_serv/forms_index.html). Purchase in person can be made at the Publications Unit of the C&SD (Address: 19/F, Wanchai Tower, 12 Harbour Road, Wan Chai; Tel.: 2582 3025).
17. 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, October 7, 2003
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