The value of total retail sales in November, provisionally estimated at $20.5 billion, increased by 1.1% over a year earlier, according to the Census & Statistics Department.

After netting out the effect of price changes over the same period, the volume of total retail sales fell 2.8% over a year earlier.

Total retail sales in the first 11 months of 2008 increased 11.6% in value or 5.6% in volume over the same period a year earlier.

Comparing November 2008 with November 2007, the volume of fuels sales increased the most, 9.3%, followed by sales of furniture & fixtures (+5.8%); commodities in department stores (+2.8%) and electrical goods and photographic equipment (+1.3%).

The volume of vehicle and parts sales fell the most, 36.6%, followed by sales of footwear, allied products and other clothing accessories (-5.5% in volume); jewellery, watches, clocks and valuable gifts (-3.7%); miscellaneous consumer goods (-3.5%); miscellaneous consumer durable goods (-3.4%); food, alcoholic drinks & tobacco (-2.1%) ; and commodities in supermarkets (-0.8%).

The revised estimate of the value of total retail sales in October 2008, at $20.8 billion, rose 0.3% over a year earlier, while the volume of total retail sales fell 4.3%.

Global slowdown puts drag on spending

That the volume of retail sales registered another month of year-on-year decline in November is believed to be related to the ongoing global economic slowdown that posed a drag on local consumers' spending and inbound tourism.

However, compared with October, retail business had shown some improvement in clothing and footwear outlets and in department stores.

The positive boost from the festive mood and the rebound in inbound tourism will probably be reflected in some relative improvement in retail business in December.

The further liberalisation measures facilitating visits made by Mainland residents to Hong Kong the Central Government announced in December will also render some support to the retail businesses in Hong Kong.