Hong Kong's gross domestic product rose 6% in real terms in the first quarter over a year earlier, compared with the 7.1% growth in the previous quarter.

Analysed by constituent sector and on a year-on-year comparison, net output in all the service sectors taken together rose 6.2% in real terms, after a 7.4% increase in last year's fourth quarter.

Net output in transport, storage and communications grew 11.8% in real terms, after a 15% rise a quarter earlier. This was related to a continued expansion in transportation services, on the back of strong trade flow.

Sustained growth seen in consumer demand

Sustained growth in consumer demand, a continued surge in offshore trade, and buoyancy in inbound tourism contributed to growth in the wholesale, retail and import and export trades, restaurants and hotels. Net output rose 9.4% in real terms, following a 9.9% rise a quarter earlier.

Net output rose 4.7% in real terms in the electricity, gas and water sector, after a 1.1% rise a quarter earlier.

Net output in financing, insurance, real estate and business services rose 3.8% in real terms, lower than the 6.6% increase in last year's fourth quarter. The growth was partly attributable to improved performance in the real estate sector.

Construction picking up

After nine straight quarters of fall-off, the net output in the construction sector rose 2.5% in real terms. The pick-up in private-sector building output underpinned the moderate rebound in building and construction activity in the quarter.

Meanwhile, output in the public sector saw a lesser decline, due to the intensified works on several major civil engineering projects.

The net output in community, social and personal services went up 1.6% in real terms, after a 2.7% rise in the previous quarter.

The quarter also saw a 0.6% decline in the net output in the local manufacturing sector, after a 5% rise in last year's fourth quarter, due to a plunge in domestic exports of textile and clothing products to the US and European markets upon the removal of quotas on such products as from January.