Volume and price statistics of external merchandise trade in November 2008
************************************************************

     Further to the external merchandise trade statistics in value terms for November 2008 released earlier on, the Census and Statistics Department (C&SD) released today (January 20) the volume and price statistics of external merchandise trade for that month.

     In November 2008, the volume of Hong Kong's re-exports of goods decreased by 5.9% over November 2007, while that of domestic exports dropped sharply, by 34.2%.  Taken together, the volume of total exports of goods decreased by 7.1%.  Concurrently, the volume of imports of goods decreased by 9.8%.

     Comparing the first eleven months of 2008 with the same period in 2007, the volume of Hong Kong's re-exports of goods rose by 5.5%, whereas that of domestic exports fell significantly, by 20.6%.  Taken together, the volume of total exports of goods grew by 4.4%.  Concurrently, the volume of imports of goods increased by 4.5%.

     Comparing the three-month period ending November 2008 with the preceding three months on a seasonally adjusted basis, the volume of total exports of goods increased by 0.7%.  Within this total, the volume of re-exports of goods increased by 1.0%, whereas that of domestic exports decreased by 5.8%.  Concurrently, the volume of imports of goods decreased marginally, by 0.1%.

     Changes in volume of external merchandise trade are derived from changes in external merchandise trade value with the effect of price changes discounted.

     Comparing November 2008 with November 2007, the prices of re-exports of goods increased by 4.0%, while those of domestic exports increased by 6.3%.  Taken together, the prices of total exports of goods increased by 4.1%.  Concurrently, the prices of imports of goods increased by 3.1%.

     As regards price changes in the first eleven months of 2008 over the same period in 2007, the prices of re-exports of goods increased by 3.8%, while those of domestic exports increased by 5.1%.  Taken together, the prices of total exports of goods increased by 3.9%.  Concurrently, the prices of imports of goods increased by 4.6%.

     Price changes in external merchandise trade are reflected by changes in unit value indices of external merchandise trade which are compiled based on average unit values or, for certain commodities, specific price data.

     The terms of trade index is derived from the ratio of price index of total exports of goods to that of imports of goods.  Compared with the same period in 2007, the index increased by 1.0% in November 2008 and decreased by 0.6% in the first eleven months of 2008.

     Changes in the unit value and volume of total exports of goods by main destination are shown in Table 1.

     Comparing November 2008 with November 2007, double-digit decreases were recorded for the total export volume to the United Kingdom (-13.2%) and the USA (-12.0%).  Concurrently, the total export volume to the mainland of China (the Mainland), Germany and Japan decreased by 6.8%, 5.9% and 3.9% respectively.

     Over the same period of comparison, the total export prices to all main destinations increased: the USA (+8.4%), Germany (+7.3%), the United Kingdom (+6.2%), Japan (+5.3%) and the Mainland (+1.9%).

     Changes in the unit value and volume of imports of goods by main supplier are shown in Table 2.

     In November 2008, the import volume from Taiwan dropped significantly, by 28.6% over November 2007.  Concurrently, the import volume from Japan, Singapore, the USA and the Mainland decreased by 13.3%, 13.3%, 9.6% and 8.2% respectively.

     Comparing November 2008 with November 2007, the import prices from Taiwan, Japan, the Mainland and the USA increased by 5.3%, 4.8%, 4.7% and 0.3% respectively.  On the other hand, the import prices from Singapore decreased by 1.0%.

     Starting from the next round of press release on February 16, the X-12 ARIMA method will replace the current X-11 ARIMA method for performing seasonal adjustment of the volume statistics of external merchandise trade.  The X-12 ARIMA method is an update to the X-11 ARIMA method with enhanced modelling and diagnostic capabilities.  The X-12 ARIMA method has now been a standard method used by statistical offices in many countries/territories for performing seasonal adjustment of statistical series.

Further information

     Details of the above statistics are published in the November 2008 issue of the "Hong Kong Merchandise Trade Index Numbers".  Users can download the publication free of charge at the website of the C&SD (www.censtatd.gov.hk/products_and_services/products/publications/index.jsp).

     Print version of the publication is available for sale at HK$26 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 the publication is also available for sale online at the Government Bookstore of the Information Services Department (www.bookstore.gov.hk).

     Enquiries on merchandise trade indices may be directed to Trade Analysis Section of the C&SD (Tel.: 2582 4918).

Ends/Tuesday, January 20, 2009
Issued at HKT 16:30

NNNN