Retail sales surged 8.1% to $38.7b

External headwinds feared to spook upward trend.

The value of total retail sales in August, provisionally estimated at $38.7 billion, rose 8.1% year-on-year, the Census & Statistics Department announced today.

After netting out the effect of price changes over the same period, the total retail sales volume grew 7.2%.

The revised estimate of the total retail sales value in July increased 9.3% over a year earlier, while the total retail sales volume rose 8.7%.

For the first eight months, total retail sales grew 13.4% in value and 12.8% in volume over a year earlier.

Analysed by broad type of retail outlet, the volume of sales of jewellery, watches and clocks, and valuable gifts increased 22.4% year-on-year in August. This was followed by sales of commodities in department stores (21.5%); miscellaneous consumer durable goods (11.2%); Chinese drugs and herbs (12.7%); and, optical shops (15.1%).

The volume of sales of electrical goods and photographic equipment decreased by 7.6%. This was followed by sales of motor vehicles and parts (-18.1% in volume); fuels (-2.5%); books, newspapers, stationery and gifts (-1.9%); and, furniture and fixtures (-6%).

The department noted that the growth of retail sales in August, though somewhat slower than those earlier this year, was still notable on a year-on-year comparison.

Looking ahead, it said the performance of the retail business in the near term should continue to receive support from the still-favourable labour market conditions and further growth of inbound tourism.

However, it added the Government needs to closely monitor whether the unsteady external environment will affect the local economy going forward.