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The Census and Statistics Department (C&SD) released the latest figures on retail sales today (January 31).
The value of total retail sales in December 2007, provisionally estimated at $25.1 billion, increased by 16.8% over a year earlier. After netting out the effect of price changes over the same period, the volume of total retail sales increased by 12.4% in December 2007 over a year earlier.
The revised estimate of the value of total retail sales in November 2007, at $20.3 billion, increased by 19.5% over November 2006, while the volume of total retail sales increased by 15.3%.
Analysed by type of retail outlet and comparing December 2007 with December 2006, the volume of sales of motor vehicles and parts increased the most, by 37.9%. This was followed by sales of electrical goods and photographic equipment (+30.6% in volume); footwear, allied products and other clothing accessories (+27.3%); jewellery, watches and clocks, and valuable gifts (+15.4%); furniture and fixtures (+13.2%); miscellaneous consumer goods (+13.0%); commodities in department stores (+10.9%); wearing apparel (+10.5%); commodities in supermarkets (+3.0%); fuels (+2.2%); and miscellaneous consumer durable goods (+1.5%).
On the other hand, the volume of sales of food, alcoholic drinks and tobacco in December 2007 decreased slightly by 0.6% compared with a year earlier.
Based on the seasonally adjusted series, the volume of total retail sales increased by 3.1% in the fourth quarter of 2007 compared with the preceding quarter.
For 2007 as a whole, total retail sales increased by 12.8% in value or 10.1% in volume over 2006.
Analysed by type of retail outlet and comparing the whole year of 2007 with 2006, the volume of sales of electrical goods and photographic equipment increased the most, by 25.4%. This was followed by sales of motor vehicles and parts (+22.8% in volume); footwear, allied products and other clothing accessories (+16.5%); jewellery, watches and clocks, and valuable gifts (+15.8%); commodities in department stores (+10.8%); wearing apparel (+9.1%); miscellaneous consumer goods (+8.5%); furniture and fixtures (+7.8%); commodities in supermarkets (+3.4%); miscellaneous consumer durable goods (+3.1%); fuels (+1.8%); and food, alcoholic drinks and tobacco (+0.9%).
These retail sales statistics are primarily intended to measure the sales receipts in respect 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 (including goods purchased from all channels) and services by Hong Kong residents whether domestically or abroad.
Commentary
A Government spokesman pointed out that total retail sales continued to grow strongly in December 2007 over a year earlier, reflecting the prevailing strength in consumer spending as well as the sustained rapid expansion of inbound tourism. For 2007 as a whole, retail sales volume rose markedly by 10.1%, the fastest increase since 1992. Looking ahead, the robust labour market conditions, vibrant inbound tourism and upbeat consumer sentiment should continue to render support to retail business. Yet the recent heightened volatility in the financial markets is an area to watch out.
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 November 2007 and the provisional figures for December 2007. The value index is compiled with the average monthly value index of 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 November 2007 and the provisional figures for December 2007. The volume index is compiled with the average monthly volume index of 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 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 Government Bookstore of the Information Services Department (www.bookstore.gov.hk).
Enquiries about the survey results may be directed to the Distribution Services Statistics Section of the C&SD (Tel.: 2802 1258).
Ends/Thursday, January 31, 2008
Issued at HKT 16:15
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