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The Census and Statistics Department (C&SD) released the latest figures on retail sales today (June 1).
The value of total retail sales in April 2006, provisionally estimated at $18.6 billion, increased by 9.4% over a year earlier. After netting out the effect of price changes over the same period, the volume of total retail sales increased by 7.9% in April 2006 over a year earlier.
The revised estimate of the value of total retail sales in March 2006, at $18.0 billion, increased by 9.0% over March 2005, while the volume of total retail sales increased by 7.7%.
Taking the first four months of 2006 together, total retail sales increased by 6.9% in value or 5.4% in volume over the same period a year earlier.
Analysed by type of retail outlet and comparing April 2006 with April 2005, the volume of sales of motor vehicles and parts increased the most, by 15.0%. This was followed by sales of commodities in department stores (+14.4% in volume); footwear, allied products and other clothing accessories (+13.1%); furniture and fixtures (+12.2%); miscellaneous consumer durable goods (+11.3%); miscellaneous consumer goods (+9.2%); wearing apparel (+8.5%); electrical goods and photographic equipment (+7.0%); commodities in supermarkets (+7.0%); food, alcoholic drinks and tobacco (+6.2%); and fuels (+2.8%).
On the other hand, the volume of sales of jewellery, watches and clocks, and valuable gifts decreased by 4.2% in April 2006 compared with a year earlier.
Based on the seasonally adjusted series, the volume of total retail sales increased by 2.0% in the three months ending April 2006 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 Secretariat spokesman pointed out that the volume of total retail sales continued to grow markedly in April as compared with a year earlier. The strengthening in consumer spending was underpinned by improving employment incomes and better job opportunities, as well as by the positive wealth effect from the strong performance of the stock market in that month. Although the economic outlook is somewhat clouded by the range of uncertainties in the external environment and increased volatility in the financial markets, the improving employment incomes and further expansion of inbound tourism should continue to render support to local 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 March 2006 and the provisional figures for April 2006, with average retail sales from October 1999 to September 2000 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 March 2006 and the provisional figures for April 2006, with average retail sales from October 1999 to September 2000 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.
The report containing the analysis of the April 2006 results is available, in print version and download version (in PDF format). It can be obtained online at the "Statistical Bookstore, Hong Kong" (http://www.statisticalbookstore.gov.hk). Print version if purchased online is offered at 85% of its original price at the Statistical Bookstore as well as the Government Bookstore (http://www.isd.gov.hk/eng/bookorder.htm).
Print version can be purchased through mail order by completing and returning an order form which can be downloaded from the C&SD's website (http://www.censtatd.gov.hk/eng/prod_serv/forms_index.html), or in person at the Publications Unit of the C&SD (Address: 19/F Wanchai Tower, 12 Harbour Road, Wan Chai; Tel.: 2582 3025).
Enquiries about the survey results may be directed to the Distribution Services Statistics Section of the C&SD (Tel.: 2802 1258).
Ends/Thursday, June 1, 2006
Issued at HKT 16:16
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