Based on the seasonally adjusted series, the volume of total retail sales increased by 3.0 percent in the three months ending May 2006 compared with the preceding three-month period.
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 Secretariat spokesman pointed out that the volume of total retail sales in May as compared with a year earlier rose more moderately. There were year-on-year decreases in the sales of clothing and footwear and jewellery and watches, yet sales of commodities in department stores, foodstuffs and miscellaneous consumer goods continued to record noticeable growth.
marketing@alchempro.com
