Buoyant demand: The total retail sales value in May was $18.6 billion, up 5.3% over a year earlier. Footwear retailers enjoyed a 4.1% sales increase that month.

The total retail sales value surged 5.3% over a year earlier to $18.6 billion in May, while the total retail sales volume rose 2%, the Census & Statistics Department says.

The department said consumer sentiment appears to remain upbeat, despite the higher interest rates and the recent correction in the stock market. The continued economic upturn and distinct growth in inbound tourism should render support to local retail business in the period ahead.

Analysed by type of retail outlet, the sales volume of food, alcoholic drinks and tobacco increased the most, by 9.6%.

Rises in sales volume were also seen in miscellaneous consumer durable goods (up 9.6%); miscellaneous consumer goods (6.2%); commodities in department stores (5.9%); footwear, allied products and other clothing accessories (4.1%); commodities in supermarkets (3%); electrical goods and photographic equipment (2.7%); and motor vehicles and parts (2.1%).

However, the sales volume of jewellery, watches and clocks, and valuable gifts and of wearing apparel dropped 14.5% and 4.4%, while the sales volume of furniture and fixtures fell 2.7%.

More observations needed

The department said the volume of total retail sales in May as compared with a year earlier rose more moderately. More observations for the coming months are needed to ascertain if the moderation in May would continue.

The revised estimate of the total retail sales value in April, at $18.6 billion, went up 9.5% compared with a year earlier, while the total retail sales volume rose 7.9%.

Based on the seasonally adjusted series, the total retail sales volume rose 3% in the three months ending May compared with the preceding three-month period.