Life of Guangzhou - HK May Retail Sales Value Down 6.2%

Total retail sales value fell to $21.6 billion in May, down 6.2% on the same period last year, while total retail sales volume dropped 6.4%, the Census & Statistics Department.

The department said today retail sales remained in decline in May, with consumers still cautious about spending on luxuries like cars and jewellery, coupled with a drop in visitor arrials. However, local consumer sentiment continued to hold up rather well, it added.

The near-term outlook for retail business will continue to be affected by the uncertainties surrounding the pace of economic recovery and the impact of human swine flu on tourism. Yet the signs of a stabilising global economy and the Government's additional round of relief measures should give some support to consumer confidence.

Sales drop
Analysed by type of retail outlet, the sales volume of vehicles and parts dipped 32.2%, followed by jewellery, watches and clocks, and valuable gifts (-10.9%), and miscellaneous consumer goods (-9.2%).

Decreases were also recorded in miscellaneous consumer durable goods (-8.2%), apparel (-7.6%), furniture and fixtures (-7.3%), commodities in department stores (-2%), food, alcohol and tobacco (-1.5%), fuel (-0.8%), and footwear, allied products and other clothing accessories (-0.5%).

However, the sales volume of commodities in supermarkets rose 0.6%.

Based on the seasonally adjusted series, the total retail sales volume fell 3.4% in the quarter ending May compared with the preceding quarter.

Taking the first five months together, total retail sales fell 4.4% in value or 5.6% in volume compared with the same period last year.

Total retail sales value in April was revised to $21.7 billion, down 4.3% on a year earlier, while total retail sales volume fell 5.4%.

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