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The Census and Statistics Department (C&SD) released the latest figures on retail sales today (June 30).
The value of total retail sales in May 2016, provisionally estimated at $35.7 billion, decreased by 8.4% compared with the same month in 2015. The revised estimate of the value of total retail sales in April 2016 decreased by 7.5% compared with a year earlier. For the first five months of 2016 taken together, the value of total retail sales decreased by 10.8% compared with the same period in 2015.
After netting out the effect of price changes over the same period, the volume of total retail sales in May 2016 decreased by 9.0% compared with a year earlier. The revised estimate of the volume of total retail sales in April 2016 decreased by 7.7% compared with a year earlier. For the first five months of 2016 taken together, total retail sales decreased by 10.2% in volume compared with the same period in 2015.
Analysed by broad type of retail outlet in descending order of value of sales and comparing May 2016 with May 2015, the value of sales of jewellery, watches and clocks, and valuable gifts decreased by 18.7%. This was followed by sales of commodities in department stores (-5.9% in value); wearing apparel (-5.7%); other consumer goods, not elsewhere classified (-0.3%); electrical goods and photographic equipment (-25.2%); motor vehicles and parts (-6.9%); miscellaneous consumer durable goods (-34.6%); fuels (-2.2%); footwear, allied products and other clothing accessories (-6.3%); books, newspapers, stationery and gifts (-6.0%); furniture and fixtures (-6.0%); Chinese drugs and herbs (-7.2%); and optical shops (-8.8%).
On the other hand, the value of sales of commodities in supermarkets increased by 1.5% in May 2016 over a year earlier. This was followed by sales of medicines and cosmetics (+0.3% in value); and food, alcoholic drinks and tobacco (+3.1%).
Based on the seasonally adjusted series, the value of total retail sales increased by 1.1% in the three months ending May 2016 over the preceding three-month period, while the volume of total retail sales increased by 0.3%.
These retail sales statistics measure the sales receipts in respect of goods sold by local retail establishments and are primarily intended for gauging the short-term business performance of the local retail sector. They cover consumer spending on goods but not on services (such as those on housing, catering, medical care and health services, transport and communication, financial services, education and entertainment) which account for over 50% of the overall consumer spending. Moreover, they include spending on goods in Hong Kong by visitors but exclude spending outside Hong Kong by Hong Kong residents. Hence they should not be regarded as indicators for measuring overall consumer spending.
Users interested in the trend of overall consumer spending should refer to the data series of private consumption expenditure (PCE), which is a major component of the Gross Domestic Product published at quarterly intervals. 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 locally or abroad. Please refer to the C&SD publication "Gross Domestic Product (Quarterly)" for more details.
Commentary
A government spokesman indicated that retail sales stayed weak in May, with many types of retail outlet still registering year-on-year declines in sales. This was due partly to the drag from the slowdown in inbound tourism and partly to the more cautious local consumer sentiment amid the subpar economic conditions.
The near-term outlook for retail sales is still subject to a large degree of uncertainty, depending on the performance of inbound tourism as well as the extent to which local consumption sentiment will be affected by the increased external headwinds and heightened financial market volatility. The Government will continue to monitor closely the retail sales performance and its repercussions on the wider economy and job market.
Further information
Table 1 presents the revised figures on value index and value of retail sales for all retail outlets and by broad type of retail outlet for April 2016 as well as the provisional figures for May 2016. The provisional figures on the value of retail sales for all retail outlets and by broad type of retail outlet as well as the corresponding year-on-year changes for the first five months of 2016 taken together are also shown.
Table 2 presents the revised figures on volume index of retail sales for all retail outlets and by broad type of retail outlet for April 2016 as well as the provisional figures for May 2016. The provisional figures on year-on-year changes for the first five months of 2016 taken together are also shown.
Table 3 shows the movements of the value and 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 classification of retail establishments follows the Hong Kong Standard Industrial Classification (HSIC) Version 2.0, which is used in various economic surveys for classifying economic units into different industry classes.
More detailed statistics are given in the Report on Monthly Survey of Retail Sales. Users can download this publication free of charge at the website of the C&SD (www.censtatd.gov.hk/hkstat/sub/sp320.jsp?productCode=B1080003).
Users who have enquiries about the survey results may contact the Distribution Services Statistics Section of the C&SD (Tel: 3903 7400; email: mrs@censtatd.gov.hk).
Ends/Thursday, June 30, 2016
Issued at HKT 16:31
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