The value of total retail sales in August fell to $22.7 billion, down 0.2% on the same month last year. After netting out the effect of price changes over the same period, the volume of total retail sales dropped 1%.

The Census & Statistics Department today said the year-on-year drop in retail sales narrowed notably due to firm consumer sentiment amidst the stabilisation of the labour market. The rebound in tourism also contributed.

While the global economic outlook remains uncertain, the gradual improvement of the local economy, coupled with the stabilising effect of the Government's relief measures, should continue to render support to consumer confidence.

Vehicle sales drop

The sales volume of motor vehicles and parts dropped 28.8%, followed by apparel (-3.2%), food, alcohol and tobacco (-2.9%), furniture and fixtures (-2.2%), miscellaneous consumer goods (-1.8%), and commodities in supermarkets (-1.7%).

The sales volume of footwear, allied products and other clothing accessories rose 8% while that of fuels grew 7.1%. Increases were also recorded in commodities in department stores (5.1%), jewellery, watches and clocks, and valuable gifts (3.2%), miscellaneous consumer durable goods (3%), and electrical goods and photographic equipment (2.4%).

Total retail sales in the first eight months of the year dropped 4% in value or 4.8% in volume compared with the same period last year.