The value of total retail sales in December, provisionally estimated at $18 billion, rose 8.7% over a year earlier. After netting out the effect of price changes over the same period, the overall retail sales volume rose 7.7%.

The Census & Statistics Department said growth in retail sales volume accelerated in December and in the fourth quarter of 2004, reflecting strong consumer demand as the economic recovery became more and more established and as labour market conditions improved in tandem.

The buoyancy in inbound tourism also contributed, with broad-based rises in retail business of most major types of retail outlets. In particular, retail sales of consumer durable items like motor cars as well as electrical goods and photographic equipment continued to record double-digit growth as in the past few quarters, a manifestation of upbeat consumer sentiment.

Analysed by type of retail outlet, sales of electrical goods and photographic equipment rose 18.4% in volume. This was followed by sales of motor vehicles and parts (16.9%), miscellaneous consumer durable goods (14.5%), commodities in supermarkets (8.7%), commodities in department stores (8.6%), miscellaneous consumer goods (8.2%), footwear, allied products and other clothing accessories (8.1%), wearing apparel (7.0%), jewellery, watches and clocks, and valuable gifts (5.3%), and food, alcoholic drinks and tobacco (0.5%).

Furniture and fixtures sales fell 9.3% and fuels by 4.7%.

The revised estimate of total retail sales value in November was $15.2 billion, up 7.4% in value or 6.9% in volume over a year earlier. For 2004 as a whole, retail sales rose 10.8% in value or 9.1% in volume. On a quarterly basis, retail sales rose 3.2% in the three months ending December over the preceding quarter.

Comparing 2004 with 2003, sales of electrical goods and photographic equipment rose 23.9% in volume. This was followed by sales of motor vehicles and parts (23.1%), jewellery, watches and clocks, and valuable gifts (12.2%), commodities in department stores (10.3%), furniture and fixtures (9.5%), miscellaneous consumer goods (9.1%), wearing apparel (8.8%), footwear, allied products and other clothing accessories (8.1%), miscellaneous consumer durable goods (4.5%), and commodities in supermarkets (2.8%).