XN000022-1997-04-25 — Page 8

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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 early February this year, but in mid-February last year, the year-on-year change in retail sales in February this year was likely to have been affected by the high base of comparison in February last year. (In February 1996, retail sales increased by 21% in value or 15% in volume over a year earlier.) It is therefore more appropriate to compare the retail sales figures for January and February taken together.

Taking the first two months of 1997 together, total retail sales rose by 7% in value and 3% in volume when compared with the same period last year.

Among different types of commodities, sales of motor vehicles rose most significantly, by 38% in both value and volume terms in January and February 1997 combined over a year earlier. Sales of miscellaneous consumer goods and valuable goods (jewellery, watches and clocks and valuable gifts) also recorded notable growth, by 12% and 6% in value respectively. In terms of volume, they increased by 7% and 10% respectively.

Concurrently, sales of fuels surged by 9% in value and 1% in volume.

Besides, sales of commodities in supermarkets; food, alcoholic drinks and tobacco; and other consumer durable goods also registered increases, by 6%, 3% and 2% in value respectively, but all remained virtually no change in volume.

Meanwhile, sales of clothing and footwear rose by 4% in value, but dropped by 4% in volume. Sales in department stores decreased by 1% in value and 7% in

volume.

Compared with January 1997 (but bearing in mind that this comparison is largely affected by seasonal factors), total retail sales in February 1997 decreased by 20% in both value and volume.

The volume of retail sales is derived from the value of retail sales after adjusting for price changes. The relevant components of the Consumer Price Index are used as deflators.

Table 1 presents the revised total retail sales figure for January 1997 and the provisional figure for February 1997.