On the rise: Retail sales for December rose 6.9% in value over a year earlier, to reach an estimated $19.3 billion.

Retail sales for December rose 6.9% in value over a year earlier, to reach an estimated $19.3 billion, the Census & Statistics Department says. After netting out the effect of price changes over the same period, the volume of total retail sales increased 5.8% from a year earlier.

The department said the overall retail sales volume showed a faster year-on-year increase in December, indicating that consumer sentiment was fairly strong during the festive season.

Notwithstanding the higher interest rates, consumption spending should continue to fare well on the back of the optimistic economic and employment outlook, the increase in labour income, and inbound tourism's continuous expansion, the department added.

Demand rises for miscellaneous consumer goods

In December, the volume of sales of miscellaneous consumer goods increased most, by 10.6%.

This was followed by sales of footwear, allied products and other clothing accessories (+10.4% in volume); wearing apparel (+10.3%); department store commodities (+10%); fuels (+9%); electrical goods and photographic equipment (+5.8%); food, alcoholic drinks and tobacco (+5.2%); furniture and fixtures (+4.9%); and supermarket commodities (+4.2%).

The volume of sales of motor vehicles and parts fell 9.2% from a year earlier, while that of jewellery, watches and clocks, and valuable gifts dropped 3.5%. Miscellaneous consumer durable goods sales dropped 2.3%.

The volume of total retail sales increased 1.8% in the fourth quarter compared with the preceding quarter.

Retail sales up 6.8% in 2005

For 2005 as a whole, retail sales rose 6.8% in value or 5.9% in volume. Comparing 2005 with 2004, sales of electrical goods and photographic equipment rose 13.1% in volume.

This was followed by sales of wearing apparel (+8.3% in volume); miscellaneous consumer goods (+7.5%); department stores commodities (+7.4%); footwear, allied products and other clothing accessories (+6.3%); supermarket commodities (+5.9%); miscellaneous consumer durable goods (+2.4%); jewellery, watches and clocks, and valuable gifts (+2.3%); fuels (+1.8%); food, alcoholic drinks and tobacco (+1.7%); and furniture and fixtures (+0.5%).