The Census and Statistics Department (C&SD) released the latest figures on retail sales November 1.
The value of total retail sales in September 2007, provisionally estimated at $19.6 billion, increased by 15.8% over a year earlier. After netting out the effect of price changes over the same period, the volume of total retail sales increased by 13.0% in September 2007 over a year earlier.
The revised estimate of the value of total retail sales in August 2007, at $20.6 billion, increased by 15.2% over August 2006, while the volume of total retail sales increased by 12.7%.
Taking the first nine months of 2007 together, total retail sales increased by 11.2% in value or 9.0% in volume over the same period a year earlier.
Analysed by type of retail outlet and comparing September 2007 with September 2006. This was followed by sales of jewellery, watches and clocks, and valuable gifts (+26.1% in volume); footwear, allied products and other clothing accessories (+23.0%); commodities in department stores (+16.1%); furniture and fixtures (+11.5%); wearing apparel (+10.6%); miscellaneous consumer goods (+10.0%); miscellaneous consumer durable goods (+8.6%); commodities in supermarkets (+7.3%).
Based on the seasonally adjusted series, the volume of total retail sales in the third quarter of 2007 increased by 5.5% compared with the preceding quarter.
These retail sales statistics are primarily intended to measure the sales receipts inrespect 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 retail sales continued to register double-digit and broad-based growth in September. The spokesman explained further that consumer sentiment was upbeat, due to rising income and improving job market as well as the buoyant stock market. The strong performance of inbound tourism in September also boosted retail sales.
The spokesman believed that consumer spending is likely to hold up well on the back of the strong economic fundamentals. Continuous robust growth of inbound tourism should also add support to retail business.
