Buoyant demand: The sales volume of commodities in department stores rose 14.8% in June.

June's total retail sales value surged 5.2% over the same month last year, to $17.4 billion, while the total retail sales volume rose 3.3%.

The Census & Statistics Department said consumer sentiment has remained bullish in recent months, notwithstanding the correction of the stock market in May and June amidst the upward pressures on interest rates.

Strong sentiment

The fairly strong consumer sentiment on the back of the generally sanguine economic outlook and improving employment income, together with the sustained expansion of inbound tourism, will continue to render support to local retail business, the department added.

Analysed by type of retail outlet, the sales volume of commodities in department stores increased the most, by 14.8%.

Rises in sales volume were also seen in footwear, allied products and other clothing accessories (up 12%); electrical goods and photographic equipment (6.2%); miscellaneous consumer durable goods (5.7%); miscellaneous consumer goods (5.4%); wearing apparel (4.6%); commodities in supermarkets (4.1%); food, alcohol and tobacco (4%); motor vehicles and parts (2.7%); and furniture and fixtures (0.4%).

Jewellery drop

However, the sales volume of jewellery, watches and clocks, and valuable gifts and of fuels fell 8.7% and 4.2%.

The revised estimate of the value of total retail sales in May, at $18.6 billion, went up 5.3% compared with May, while the volume of total retail sales rose 3.5%.

Based on the seasonally adjusted series, the total retail sales volume rose 2.4% in the second quarter compared with the preceding quarter.

Taking the first half of 2006 together, total retail sales rose 6.4% in value or 5.5% in volume over the same period a year earlier.