The following is an unedited transcript of the news release from the Government of the Hong Kong,Census and Statistics Department.


The value of total retail sales in August 2008, provisionally estimated at $22.8 billion, increased by 10.4% over a year earlier. After netting out the effect of price changes over the same period, the volume of total retail sales increased by 3.9% in August 2008 over a year earlier.

The revised estimate of the value of total retail sales in July 2008, at $24.2 billion, increased by 13.7% over July 2007, while the volume of total retail sales increased by 6.6%.

Taking the first eight months of 2008 together, total retail sales increased by 15% in value or 8.3% in volume over the same period a year earlier.

Analysed by type of retail outlet and comparing August 2008 with August 2007, the volume of sales of electrical goods and photographic equipment increased the most, by 21.6%. This was followed by sales of furniture and fixtures (+14.7% in volume); fuels (+7.8%); wearing apparel (+5.2%); food, alcoholic drinks and tobacco (+3.5%); commodities in department stores (+3.3%); jewellery, watches and clocks, and valuable gifts (+2.4%); commodities in supermarkets (+2.0%); and miscellaneous consumer goods (+1.2%).

On the other hand, the volume of sales of motor vehicles and parts and that of footwear, allied products and other clothing accessories decreased by 14.8% and 4.1% respectively in August 2008 compared with a year earlier, while the volume of sales of miscellaneous consumer durable goods also decreased by 0.9%.

Based on the seasonally adjusted series, the volume of total retail sales increased by 1.8% in the three months ending August 2008 compared with the preceding three-month period.

These retail sales statistics are primarily intended to measure the sales receipts in respect 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 (including goods purchased from all channels) and services by Hong Kong residents whether domestically or abroad.

Commentary

A Government spokesman said that retail sales held quite firm in August, despite the stay-home effect and fall-off in inbound tourism during the period of the 2008 Olympic Games, and the negative impact of asset market corrections in the local economy.

Looking ahead, the recent bout of global financial market tsunami will continue to generate shocks to the local asset markets, thereby impacting on consumer sentiments and the local economy. The Government will monitor the situation closely.


Available at:

http://www.censtatd.gov.hk/press_release/press_releases_on_statistics/index.jsp?sID=2205&sSUBID=12294&displayMode=D