XN000022-1996-03-25 — Page 7

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Provisional statistics of retail sales for January

According to the provisional figures released today (Monday) by the Census and Statistics Department, the value of total retail sales in January 1996, estimated at $19.1 billion, decreased by 8% compared with January 1995.

After discounting the effect of price changes over the period, total retail sales dropped by 13% in volume.

In interpreting these latest figures, it should be noted that, affected by the timing of the Chinese New Year festival, retail sales tend to show considerable volatilities in the first two months of the year.

As the Chinese New Year occurred in mid-February this year, but in end- January last year, the year-on-year rate of change in retail sales in January this year was distorted by the high base of comparison in January last year. (In January 1995, retail sales rose sharply by 14% in value or 7% in volume, before easing off in the subsequent months.)

Largely for this reason, sales in department stores and supermarkets recorded decreases of 17% and 15% in value respectively in January 1996 over January 1995. In terms of volume, they decreased by 24% and 22% respectively.

Sales of other commodities also recorded decreases of different magnitudes. They included jewellery, watches and clocks and valuable gifts (-10% in value, -14% in volume); clothing and footwear (-3% in value, -12% in volume); food, alcoholic drinks and tobacco (-3% in both value and volume); and consumer durable goods other than motor vehicles (-1% in value, -4% in volume). Sales of fuels rose by 5% in value but dropped by 3% in volume.

Meanwhile, sales of motor vehicles continued to show significant decline compared with a year earlier, by 36% in value and 38% in volume.

Nevertheless, sales of miscellaneous consumer goods continued to record some increase, by 6% in value and 2% in volume.

Compared with December 1995 (but bearing in mind that this comparison is affected by seasonal factors), total retail sales in January 1996 decreased by 6% both in value and volume.