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Business climate survey on restaurants & similar establishments and retail trade for May 2017


Information from the Statistics and Census Service (DSEC) indicated that the business performance of the interviewed restaurants & similar establishments in May 2017 was less satisfactory than in April, with 46% of the establishments reporting a year-on-year growth in receipts, down by 6 percentage points from April. The corresponding proportions of Japanese & Korean Restaurants (25%) and Western Restaurants (35%) went down by 31 and 15 percentage points respectively, while the share of Chinese Restaurants (63%) went up by 5 percentage points. On the other hand, the proportion of establishments recording a year-on-year decline in receipts increased by 10 percentage points from April to 33%, with the corresponding proportions of Other Restaurants & Similar Establishments (41%), Local Style Cafes, Congee & Noodle Shops (31%) and Western Restaurants (30%) each growing by 10 percentage points.

As regards retail trade, the proportion of interviewed retailers reporting a year-on-year sales increase in May 2017 fell by 3 percentage points from April to 46%. Nevertheless, different types of retailers exhibited mixed performance. The proportions of Watches, Clocks & Jewellery Retailers recording a year-on-year rise in sales dropped by 24 percentage points to 44%, while the corresponding share of Motor Vehicle Retailers rose by 33 percentage points to 56%. Furthermore, all of the interviewed Leather Goods Retailers, 65% of the Adults’ Clothing Retailers, 56% of the Supermarkets and 56% of the Department Stores showed a year-on-year sales growth. On the other hand, 36% of the interviewed retailers registered a year-on-year decrease in sales, down by 2 percentage points from April, with the corresponding proportion of Motor Vehicle Retailers falling significantly by 45 percentage points.

The interviewed restaurants & similar establishments did not expect a significant improvement in business in June, with 22% anticipating a year-on-year rise in receipts, up by 3 percentage points from May. Among the various types of establishments, 25% of the Western Restaurants predicted a year-on-year increase in receipts in June, up by 15 percentage points from May. Meanwhile, 45% of the Local Style Cafes, Congee & Noodle Shops and Other Restaurants & Similar Establishments expected their receipts to stay stable year-on-year. On the other hand, the proportion of interviewed restaurants & similar establishments expecting a year-on-year decline in receipts climbed by 11 percentage points from May to 41%, with the corresponding proportions of Western Restaurants, Chinese Restaurants, and Japanese & Korean Restaurants rising by 20, 18 and 13 percentage points respectively.

Retailers remained cautious about their business prospects. The proportion of interviewed retailers anticipating a year-on-year sales increase in June went up by 3 percentage points from May to 26%. Among the various types of retailers, 80% of the Leather Goods Retailers expected a year-on-year rise in sales, and the corresponding proportions of Watches, Clocks & Jewellery Retailers (50%) and Department Stores (56%) grew by 24 and 22 percentage points respectively. On the other hand, 38% of the retailers predicted a year-on-year sales decline, similar to that in May, with the corresponding share of Motor Vehicle Retailers (67%) dropping by 11 percentage points.

The sample of the Business Climate Survey on Restaurants & Similar Establishments and Retail Trade was selected based on the value of receipts of the establishments, comprising 167 restaurants & similar establishments (accounting for 53% of the industry’s receipts) and 135 retailers (accounting for 70% of the industry’s receipts). The Survey results were not extrapolated and only reflect the assessment of the business performance and expectations of the sample restaurants and retailers.



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