The total retail sales value surged 9% over a year earlier to $17.9 billion in March, while total retail sales volume rose 7.7%, the Census & Statistics Department says.

Analysed by type of retail outlet, the sales volume of motor vehicles and parts increased the most, by 27.9%. Double-digit rises in sales volume were also seen in commodities in supermarkets (up 15.6%); miscellaneous consumer durable goods (13.6%); as well as food, alcoholic drinks and tobacco (10.1%).

Other categories which recorded sales-volume increases were footwear, allied products and other clothing accessories (up 9.4%); wearing apparel (5.7%); commodities in department stores (4.8%); miscellaneous consumer goods (4.7%); fuels (4.7%); electrical goods and photographic equipment (3.5%); furniture and fixtures (2.7%); and jewellery, watches and clocks, and valuable gifts (0.7%).

The figures indicated consumer spending held up well, despite the interest-rate hikes. Yet the distinct growth in March may be partly attributable to the distortion caused by the difference in timing of the Easter holidays. The Easter holidays fell in April this year but in March last year, when many local residents left Hong Kong for vacation.

Optimistic economic outlook

Looking ahead, the generally optimistic economic outlook, increase in labour income and further expansion of inbound tourism should continue to render support to local retail business.

The revised estimate of the total retail sales value in February, at $16.2 billion, went down 3.2% compared with a year earlier, while the volume of total retail sales decreased 4.9%. This came after an 11.6% rise in value or 10.4% in volume in January. However, retail sales tend to show greater volatility in the first two months of a year because of the effect of the timing of the Lunar New Year.

Taking the first two months of this year together, retail sales grew 4.7% in value or 3.2% in volume from a year earlier. For this year's first quarter, total retail sales surged 6% in value or 4.6% in volume over the same period last year.

Based on the seasonally adjusted series, total retail sales volume increased 1.2% in this year's first quarter when compared with the preceding quarter.