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The Census and Statistics Department (C&SD) released the latest figures on retail sales today (July 3).
The value of total retail sales in May 2006, provisionally estimated at $18.6 billion, increased by 5.3% over a year earlier. After netting out the effect of price changes over the same period, the volume of total retail sales increased by 2.0% in May 2006 over a year earlier.
The revised estimate of the value of total retail sales in April 2006, at $18.6 billion, increased by 9.5% over April 2005, while the volume of total retail sales increased by 7.9%.
Taking the first five months of 2006 together, total retail sales increased by 6.6% in value or 4.7% in volume over the same period a year earlier.
Analysed by type of retail outlet and comparing May 2006 with May 2005, the volume of sales of food, alcoholic drinks and tobacco increased the most, by 9.6%. This was followed by sales of miscellaneous consumer durable goods (+9.6% in volume); miscellaneous consumer goods (+6.2%); commodities in department stores (+5.9%); footwear, allied products and other clothing accessories (+4.1%); commodities in supermarkets (+3.0%); electrical goods and photographic equipment (+2.7%); and motor vehicles and parts (+2.1%).
On the other hand, the volume of sales of jewellery, watches and clocks, and valuable gifts and of wearing apparel decreased by 14.5% and 4.4% respectively in May 2006 compared with a year earlier, while the volume of sales of furniture and fixtures also decreased by 2.7%.
Based on the seasonally adjusted series, the volume of total retail sales increased by 3.0% in the three months ending May 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 in May as compared with a year earlier rose more moderately. There were year-on-year decreases in the sales of clothing and footwear and jewellery and watches, yet sales of commodities in department stores, foodstuffs and miscellaneous consumer goods continued to record noticeable growth. More observations for the coming months are needed to ascertain if the moderation in May would continue. For the first five months of 2006 as a whole, the volume of retail sales still recorded a solid increase of 4.7% over the same period a year earlier. At present, consumer sentiment appears to remain upbeat, despite the higher interest rates and the recent correction of the stock market. The continued economic upturn and distinct growth in inbound tourism should render support to local retail business in the period ahead.
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 April 2006 and the provisional figures for May 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 April 2006 and the provisional figures for May 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 May 2006 results is now available. Users can download this publication free of charge at the "Statistical Bookstore, Hong Kong" (www.statisticalbookstore.gov.hk) of the C&SD.
Print version of this publication is available for sale at HK$10 per issue. Purchase can be done in person at the Publications Unit of the C&SD (Address : 19/F Wanchai Tower, 12 Harbour Road, Wan Chai; Tel. : 2582 3025) or through mail order by returning a completed order form which can be downloaded from the C&SD's website (www.censtatd.gov.hk/products_and_services/other_services/provision_of_stat/mail_ordering_of_publications/index.jsp). Print version of this publication is also available for sale online at the Statistical Bookstore and the Government Bookstore of the Information Services Department (www.isd.gov.hk/eng/bookorder.htm). Print versions if purchased online are offered a discount, at 85% of their original prices.
Enquiries about the survey results may be directed to the Distribution Services Statistics Section of the C&SD (Tel.: 2802 1258).
Ends/Monday, July 3, 2006
Issued at HKT 16:16
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