August saw the total retail sales value surge to $20.6 billion, up 15% on the same month last year, while the total retail sales volume rose 12.5%, the Census & Statistics Department says.

Supported by rising incomes and better job prospects, which enhanced people's willingness to spend, the volume of retail sales continued to show vibrant and broad-based growth. The thriving stock market in August, despite the US sub-prime mortgage turbulence, together with inbound tourism growth, also helped.

The department said consumer sentiment remains upbeat on the back of the strong economic fundamentals and would lend support to the retail business going forward.

Analysed by type of retail outlet, the volume of sales of electrical goods and photographic equipment increased the most, by 37.7%. This was followed by sales of jewellery, watches and clocks, and valuable gifts (31.8%); footwear, allied products and other clothing accessories (19.5%); motor vehicles and parts (15.7%); miscellaneous consumer durable goods (10.3%); commodities in department stores (8.7%); apparel (8.1%); miscellaneous consumer goods (7.5%); furniture and fixtures (7.0%); commodities in supermarkets (5.6%); and fuels (4.9%).

The sales volume of food, alcohol and tobacco remained virtually unchanged compared with a year earlier.

Based on the seasonally adjusted series, the volume of total retail sales in the three months ending August rose 8.2% compared with the preceding three-month period.