Retail sales growth moderated in May, with total value up 12.9% on a year earlier to $23.1 billion and volume up 5.5%, the Census & Statistics Department says.

This was mainly due to the high base of comparison last May, when the value of retail sales began to register double-digit growth. The revised estimate of total retail sales value in April was $22.8 billion, up 18.6% on a year earlier, while volume grew 11.5%.

Taking this year's first five months together, total retail sales rose 16.8% in value and 10.4% in volume over the same period last year.

Analysed by type of retail outlet, the sales volume of electrical goods and photographic equipment rose 18.4% in May. This was followed by fuels (up 12.6%); miscellaneous consumer goods (8.8%); furniture and fixtures (8.2%); footwear, allied products and other clothing accessories (7.5%); wearing apparel (6.4%); commodities in department stores (4.8%); motor vehicles and parts (3.1%); jewellery, watches and clocks, and valuable gifts (1.3%); and commodities in supermarkets (0.7%).

The sales volume of miscellaneous consumer durable goods dipped 2.9% while that of food, alcoholic drinks and tobacco also went down 1.2%.

Based on the seasonally adjusted series, the total retail sales volume fell 2.4% in the quarter ending May compared with the preceding three-month period.

Uncertainties cloud economic picture

Looking ahead, the expected global economic slowdown, the ongoing financial market turbulence, inflation and high international commodity prices, the upward pressure on global interest rates, and the consolidation in local asset prices in recent months are likely to have some impact on the local economy and consumer sentiments.

The firm labour market conditions and further growth of inbound tourism should continue to support the retail business.