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 the total retail sales continued to display a strong performance in October 2007, marking the fifth consecutive month of double-digit year-on-year growth in volume terms.
This reflected the upbeat consumer sentiment on the back of the robust economic fundamentals and improving labour market. The booming stock market during the month, together with the continued surge in the number of incoming visitors, also helped.
The spokesman believed that rising labour income and better job market, together with the expansion of inbound tourism, should provide firm support to retail business in the period ahead.
Census and Statistics Department
marketing@alchempro.com
