Retail sales weakened in March with the total value dropping 7.7% on a year earlier, to $20.8 billion, and volume down 9.3%.

The Census & Statistics Department today said although the improved performance of the stock and property markets since the beginning of the year rendered some support to consumer sentiment, uncertain job and income prospects continued to weigh on consumption spending.

The near-term prospects for the retail business will continue to be overshadowed by the economic downturn, the department said.

Nevertheless, the Government's efforts to preserve employment and the stable performance of inbound tourism should help provide some support. It will also closely monitor the threat the recent outbreak of swine flu in North America posed to the global economy and to world tourism.

Sales shrink

Sales of motor vehicles and parts fell the most in the month, by 32.6% in volume, followed by sales of wearing apparel (-19.6%); miscellaneous consumer durable goods (-19.1%); furniture and fixtures (-14.9%); miscellaneous consumer goods (-10%); jewellery, watches and clocks, and valuable gifts (-9.7%); commodities in department stores (-7.9%); commodities in supermarkets (-3.6%); footwear, allied products and other clothing accessories (-3.3%); and food, alcoholic drinks and tobacco (-2.5%).

However, sales of fuels rose 4.6% in volume while electrical goods and photographic equipment nudged up 0.6%.