Sales by the domestic retail, and food and beverage sectors last month continued to grow by a double-digit percentage on an annual basis, while sales in the wholesale sector fell for an eighth straight month due to weak demand and inventory adjustments, the Ministry of Economic Affairs said yesterday.
Retail sales last month totaled NT$371.9 billion (US$11.86 billion), an annual increase of 13.9 percent, while food and beverage sales reached NT$83.4 billion, up 34.7 percent year-on-year, the ministry said in a report.
Last month’s retail, and food and beverage sales increases were slower than the previous month, when sales grew 17.1 percent and 45.2 percent respectively, ministry data showed.
Photo: CNA
Last month’s retail sales increase was mainly driven by department store sales, which rose 30.4 percent from a year earlier, as well as sales of automobiles, motorbikes and related components, which soared 45 percent, while sales of clothing and accessories increased 22.2 percent, the report said.
However, sales of information and communications technology products as well as home appliances and household equipment dropped 5.5 percent annually, while sales from supermarkets and hypermarkets declined 5 percent and 7.2 percent respectively, the report said.
As for the food and beverage sector, the ministry attributed the increase to catering service providers, which reported a 71.8 percent annual rise in sales, as airlines added passenger flights, supporting demand for in-flight meals, as well as the effect of a relatively lower comparison base last year.
In addition, restaurant sales rose 36.1 percent year-on-year, because of the holiday effect of the Dragon Boat Festival and a boost from teacher appreciation banquets during the graduation season, while beverage sales increased 16 percent thanks to increased demand for cold drinks amid hot weather, the report said.
In the second quarter of the year, retail sales rose 12.7 percent from a year earlier to NT$1.12 trillion, boosting sales in the first six months 9 percent to NT$2.23 trillion, a record high, the ministry said.
Food and beverage sales last quarter increased 36.9 percent to NT$248.6 billion, while sales in the first six months rose 26.3 percent to NT$503.8 billion, also a record high, ministry data showed.
However, the wholesale sector remained under pressure last month, affected by central banks’ monetary tightening policies, a global slump in end-market demand, ongoing inventory destocking throughout supply chains and a decline in international raw material prices, which continued to dent demand for machinery equipment, building materials and chemicals, the report said.
Overall sales by wholesalers last month dropped 11.4 percent from a year earlier to NT$965.5 billion, and fell 13.1 percent to NT$2.82 trillion in the second quarter. Sales for the first six months were down 12.3 percent to NT$5.61 trillion, it said.
The ministry forecast that this month’s retail and food and beverage sales would continue to rise as more people are willing to spend during the summer vacation and auto dealers plan larger promotional campaigns ahead of Ghost Month, the seventh month of the lunar calendar and generally considered an inauspicious time to purchase new vehicles.
However, the wholesale sector is predicted to report another decline, as the global economy’s growth momentum remains sluggish and end-market demand continues to be weak, the ministry said.
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