The Census and Statistics Department (C&SD) released the latest figures on retail sales December 3.
The value of total retail sales in October 2007, provisionally estimated at $20.7 billion, increased by 16.6% 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 October 2007 over a year earlier.
The revised estimate of the value of total retail sales in September 2007, at $19.6 billion, increased by 15.8% over September 2006, while the volume of total retail sales increased by 13.0%.
Taking the first ten months of 2007 together, total retail sales increased by 11.7% in value or 9.3% in volume over the same period a year earlier.
Analysed by type of retail outlet and comparing October 2007 with October 2006. This was followed by sales of jewellery, watches and clocks, and valuable gifts (+27.4%); footwear, allied products and other clothing accessories (+19.3%); miscellaneous consumer goods (+14.8%); miscellaneous consumer durable goods (+14.1%); wearing apparel (+14.0%); commodities in department stores (+14.0%); furniture and fixtures (+6.5%); commodities in supermarkets (+2.4%).
Based on the seasonally adjusted series, the volume of total retail sales in the three months ending October 2007 increased by 3.4% compared with the preceding three-month period.
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 the total retail sales continued to display a strong performance in October 2007, marking the fifth consecutive month of double-digit year-on-year growth in volume terms.
This reflected the upbeat consumer sentiment on the back of the robust economic fundamentals and improving labour market. The booming stock market during the month, together with the continued surge in the number of incoming visitors, also helped.
The spokesman believed that rising labour income and better job market, together with the expansion of inbound tourism, should provide firm support to retail business in the period ahead.
