Buoyant demand: September's total retail sales value surged 7.5% over the same month last year, to $16.9 billion.

September's total retail sales value surged 7.5% over the same month last year, to $16.9 billion, while the overall retail sales volume rose 5.8%.

The Census & Statistics Department said the notable growth in overall retail sales volume signified the continued strength in local consumption spending. This was on the back of the improving employment situation, a pause in US interest rate hikes and the positive wealth effect stemming from a buoyant stock market performance.

Optimistic outlook

Looking ahead, thriving local consumption and inbound tourism should continue to bode well for local retail businesses.

The sales volume of footwear, allied products and other clothing accessories increased most, by 12.9%.

Rises in sales volume were also seen in motor vehicles and parts (up 12.7%); electrical goods and photographic equipment (12.4%); furniture and fixtures (10.5%); commodities in department stores (9.7%); fuels (7.7%); apparel (7.2%); food, alcohol and tobacco (6.1%); miscellaneous consumer goods (6.0%); and commodities in supermarkets (0.2%).

Jewellery drop

However, the sales volume of miscellaneous consumer durable goods and of jewellery, watches and clocks, and valuable gifts dropped 2% and 0.9%.

Based on the seasonally adjusted series, the total retail sales volume rose 1.4% in the third quarter compared with the preceding quarter.

Taking the first nine months of 2006 together, total retail sales rose 6.8% in value or 5.6% in volume over the same period a year earlier.

The revised estimate of the total retail sales value in August, at $17.9 billion, went up 8.4% compared with August last year, while the total retail sales volume rose 6.4%.