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 said that the volume of total retail sales showed vibrant and broad-based growth in May, reflecting the generally upbeat consumer sentiment on the back of the favourable macroeconomic environment and also positive wealth effect from the buoyant stock market. The spokesman also pointed out that the strong pick-up in inbound tourism in May added further strength to retail sales in the month.
The spokesman believed that rising labour income and better job market should continue to uphold consumer sentiment. This, together with the further expansion of inbound tourism, would provide solid support to the retail business going forward.
Census and Statistics Department
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