HK retail sales value rises 9 percent in March

The total retail sales value in March rose 9 percent over a year earlier to 17.9 billion HK dollars (2.3 billion U.S. dollars), while total retail sales volume gained 7.7 percent, the Hong Kong Census and Statistics Department said Tuesday.

Leading the surge of the sales volume was motor vehicles and parts by 27.9 percent when analyzed by type of retail outlet, according to the department.

Double-digit rises in sales volume were also reported in commodities in supermarkets, miscellaneous consumer durable goods, as well as food, alcoholic drinks and tobacco, up 15.6 percent, 13. 6 percent and 10.1 percent respectively.

Analysts said the figures indicated consumer spending held up well, despite the interest-rate hikes.

They said the distinct growth in March may be partly attributable to the distortion caused by the difference in timing of the Easter holidays, while fell in April this year but in March last year, when many local residents left Hong Kong for vacation.

The generally optimistic economic outlook, increase in labor income and further expansion of inbound tourism should continue to render support to local retail business, according to the department.

The estimate of the total retail sales value in February was revised at 16.2 billion HK dollars, down 3.2 percent compared with a year earlier, while the volume of total retail sales decreased 4. 9 percent after an 11.6 percent rise in value or 10.4 percent in volume in January.

However, retail sales tend to show greater volatility in the first two months of a year because of the effect of the timing of the Lunar New Year.

Source: Xinhua