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 spokesman pointed out that the growth in the volume of retail sales moderated in March after several months of notable growth. Part of the moderation was due to the fall-off in sales of supermarkets, as well as in sales of motor vehicles which are volatile from month to month.
Yet sales of clothing and footwear; electrical appliances and sales of department stores held up very well, a reflection of consumers' willingness to spend in tandem with the economic upturn. But the volatility in the stock market that began at end-February and extended into most of March; and also the slow-down in inbound tourism, had led to lower spending on luxurious items like jewellery and watches.
The spokesman added that yet for the first quarter as a whole, retail sales actually picked up further, as can be seen from the slightly faster year-on-year growth in the first quarter than in the fourth quarter of 2006, and also from the continued growth on a seasonally adjusted quarter-to-quarter basis. Looking forward, rising household income, improved job market and sustained low interest rates should continue to provide support to retail businesses.
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Census and Statistics Department
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