Retail sales last month increased 0.4 percent year-on-year to NT$391.5 billion (U$12.91 billion), as consumers bought a range of goods at e-commerce sites, department stores, convenience stores and cosmetics outlets, but slowing vehicle sales and economic uncertainty pose a downside risk to spending momentum ahead.
Last month’s sales growth followed four straight months of spending declines, data released by the Ministry of Economic Affairs showed yesterday.
Sales increased 0.8 percent on a month-on-month basis.
Photo: Ritchie B. Tongo, EPA
The figure marked the highest level for August and met the ministry’s forecast, which projected retail sales to be between NT$380.7 billion and NT$392.4 billion, or between an annual decline of 2.4 percent and an increase of 0.6 percent.
Excluding sales of motor vehicles and parts, which fell 4.5 percent last month due to conservative sentiment in the market, retail sales last month rose 1.3 percent from a year earlier, the ministry said in a report.
The data showed steady consumer spending at supermarkets and hypermarkets, but fuel product outlets, as well as clothing and accessories retailers, posted continued sales declines.
In the first eight months of this year, cumulative retail sales totaled NT$3.15 trillion, down 0.7 percent compared with the same period last year, the report said.
Meanwhile, food and beverage sales last month increased more than expected, up 4.8 percent annually to NT$93.3 billion, the ministry said in the same report, adding that sales were up 7.8 percent from the previous month.
Last month’s sales were the highest figure for August and beat the ministry’s forecast of a range between NT$88.1 billion and NT$90.8 billion, or between an annual decrease of 1 percent and an annual increase of 2 percent.
It came as restaurant sales rose 4.1 percent and sales at beverage stores increased 8 percent, while catering service sales grew 7.3 percent, suggesting that consumers kept dining out and spent on some discretionary items during the summer vacation and festive gatherings.
Food and beverage sales in the first eight months rose 3.1 percent year-on-year to NT$711.2 billion, the report said.
For this month, the ministry projected that retail sales would decline 2.2 to 5.2 percent from a year earlier to between NT$381.7 billion and NT$393.7 billion due to economic uncertainty and the seasonal weakness during Ghost Month, while food and beverage sales would show an annual decrease of 1 percent to an increase of 2 percent to a range between NT$83.4 billion and NT$86 billion.
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