Retail sales for last year rose 7.3% in value or 5.8% in volume over a year earlier, the Census & Statistics Department says.

Retail sales for December rose 1.5% in value over a year earlier, to reach an estimated $21.5 billion. After netting out the effect of price changes over the same period, the volume of total retail sales rose 8.1% in December over a year earlier.

Supported by rising employment income and improved economic fundamentals, retail sales grew strongly in December, the department said. The stock market boom and the rebound in inbound tourism also contributed. 

Positive outlook

The favourable macroeconomic environment and the upbeat consumer sentiment should continue to support retail business, it added.

In December, the volume of sales of motor vehicles and parts increased the most, by 40.5%.

This was followed by sales of electrical goods and photographic equipment (up 17.2%); jewellery, watches and clocks, and valuable gifts (13.3%); footwear, allied products and other clothing accessories (12.6%); fuels (12.4%); commodities in department stores (8.7%); food, alcoholic drinks and tobacco (5.5%); commodities in supermarkets (4.3%); furniture and fixtures (3.6%); miscellaneous consumer goods (3.1%); wearing apparel (2.7%); and miscellaneous consumer durable goods (0.8%).

Motor vehicle sales grow

In 2006, the volume of sales of motor vehicles and parts increased the most, by 14.4%.

This was followed by sales of electrical goods and photographic equipment (up 10.8%); footwear, allied products and other clothing accessories (8.8%); commodities in department stores (8.3%); food, alcoholic drinks and tobacco (6.4%); miscellaneous consumer goods (6.4%); miscellaneous consumer durable goods (4.6%); furniture and fixtures (4.5%); commodities in supermarkets (4.2%); fuels (4.1%); wearing apparel (2.8%); and jewellery, watches and clocks, and valuable gifts (1%).