The Census and Statistics Department (C&SD) released the latest figures on retail sales today (August 2).

The value of total retail sales in June 2010, provisionally estimated at $24.3 billion, increased by 15.3% over a year earlier. After netting out the effect of price changes over the same period, the volume of total retail sales increased by 12.1% in June 2010 when compared with a year earlier. The relevant components of the Consumer Price Index are used as deflators.

The revised estimate of the value of total retail sales in May 2010, at $25.9 billion, increased by 19.7% over May 2009, while the volume of total retail sales increased by 16.3%.

Taking the first half of 2010 together, total retail sales increased by 17.9% in value or 14.7% in volume over the same period a year earlier.

Analysed by broad type of retail outlet and comparing June 2010 with June 2009, the volume of sales of motor vehicles and parts increased the most, by 35.1%. This was followed by sales of electrical goods and photographic equipment (+26.0% in volume); jewellery, watches and clocks, and valuable gifts (+18.3%); commodities in department stores (+17.4%); footwear, allied products and other clothing accessories (+11.6%); wearing apparel (+10.0%); furniture and fixtures (+10.0%); food, alcoholic drinks and tobacco (+8.5%); miscellaneous consumer goods (+5.7%); miscellaneous consumer durable goods (+3.6%); fuels (+1.7%); and commodities in supermarkets (+1.3%).

Based on the seasonally adjusted series, the volume of total retail sales decreased by 2.6% in the second quarter of 2010 when compared with the preceding quarter.

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.