Clothing accessories & wearing apparel retail sales rise in Feb

01 Apr '08

3 min read

Based on the seasonally adjusted series, the volume of total retail sales increased by 2.5% in the three months ending February 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 pointed out that retail trade continued to perform well. Taking the first two months of 2008 together so as to neutralise the distortion effect caused by the difference in timing of the Lunar New Year holidays between 2007 and 2008, the overall volume of retail sales grew briskly at a double-digit rate over a year earlier.

Looking ahead, rising labour income, improved job market and sustained expansion of inbound tourism should continue to provide support to the retail business. However, the effect of the global financial market turmoil on Hong Kong's retail business has to be monitored.

Census and Statistics Department

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