The revised estimate of the value of total retail sales in June 2007, at $19.9 billion, increased by 14.3% over June 2006, while the volume of total retail sales increased by 12.8%.
Taking the first seven months of 2007 together, total retail sales increased by 10.0% in value or 7.9% in volume over the same period a year earlier.
Analysed by type of retail outlet and comparing July 2007 with July 2006, This was followed by sales of jewellery, watches and clocks, and valuable gifts (+20.0%); footwear, allied products and other clothing accessories (+19.9%); miscellaneous consumer durable goods (+9.4%); miscellaneous consumer goods (+8.0%); commodities in department stores (+7.7%); furniture and fixtures (+7.3%); wearing apparel (+7.1%); commodities in supermarkets (+4.1%).
Based on the seasonally adjusted series, the volume of total retail sales increased by 5.9% in the three months ending July 2007 compared with the preceding three-month period.
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 growth momentum in the volume of retail sales remained vigorous and broad-based. The spokesman explained that this reflected the upbeat consumer sentiment on the back of the robust economic fundamentals, rising wages and improving labour market.
The booming stock market during the month, together with the continued increase in the number of incoming visitors, also helped.
The spokesman believed that sustained increase in labour income and further expansion of inbound tourism should remain the favourable factors supporting the retail business.
