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The Census and Statistics Department (C&SD) released the latest figures on retail sales today (July 31).
The value of total retail sales in June 2007, provisionally estimated at $19.9 billion, increased by 14.3% over a year earlier. After netting out the effect of price changes over the same period, the volume of total retail sales increased by 12.8% in June 2007 over a year earlier.
The revised estimate of the value of total retail sales in May 2007, at $20.5 billion, increased by 10.2% over May 2006, while the volume of total retail sales increased by 9.4%.
Taking the first half of 2007 together, total retail sales increased by 9.3% in value or 7.2% in volume over the same period a year earlier.
Analysed by type of retail outlet and comparing June 2007 with June 2006, the volume of sales of motor vehicles and parts increased the most, by 37.0%. This was followed by sales of electrical goods and photographic equipment (+33.7% in volume); jewellery, watches and clocks, and valuable gifts (+18.2%); footwear, allied products and other clothing accessories (+17.7%); commodities in department stores (+15.0%); furniture and fixtures (+14.8%); wearing apparel (+14.4%); miscellaneous consumer durable goods (+8.8%); miscellaneous consumer goods (+6.9%); commodities in supermarkets (+4.8%); food, alcoholic drinks and tobacco (+1.5%); and fuels (+1.1%).
Based on the seasonally adjusted series, the volume of total retail sales increased by 2.5% in the second quarter of 2007 compared with the preceding quarter.
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 total retail sales continued to display strong and broad-based growth momentum in June. Although partly boosted by the relatively low base of comparison in June last year, the retail sales figures revealed the continued strength of local consumer spending, which was underpinned by the strong economic fundamentals, increasing labour income and buoyant stock market.
The spokesman believed that rising employment income and the improving labour market should continue to render support to local consumer spending. The further expansion of inbound tourism would also be conducive to the growth of retail business.
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 May 2007 and the provisional figures for June 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 May 2007 and the provisional figures for June 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). Print versions if purchased online are offered a discount, at 85% of their original prices.
Enquiries about the survey results may be directed to the Distribution Services Statistics Section of the C&SD (Tel: 2802 1258).
Ends/Tuesday, July 31, 2007
Issued at HKT 16:15
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