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


Information from the Statistics and Census Service (DSEC) indicated that the business performance of the interviewed restaurants & similar establishments and retailers in September 2017 was better than expected with improved business conditions. The proportions of restaurants & similar establishments and retailers reporting a year-on-year growth in receipts were higher than those in August, and they were optimistic about their business prospects in October. Among the interviewed restaurants & similar establishments, 45% registered a year-on-year rise in receipts in September, up by 12 percentage points from August. The corresponding shares of Local Style Cafes, Congee & Noodle Shops (39%) and Japanese & Korean Restaurants (56%) rose by 20 and 13 percentage points respectively. On the other hand, the proportion of establishments recording a year-on-year decline in receipts went down by 9 percentage points over August to 37%. The corresponding shares of Japanese & Korean Restaurants (25%) and Local Style Cafes, Congee & Noodle Shops (39%) dropped by 25 and 14 percentage points respectively, while the proportion of Chinese Restaurants (30%) grew by 5 percentage points.

As regards retail trade, the proportion of interviewed retailers reporting a year-on-year sales increase in September 2017 went up by 10 percentage points from August to 51%. All of the interviewed Leather Goods Retailers showed a year-on-year rise in sales in September. The corresponding shares of Watches, Clocks & Jewellery Retailers (72%) and Motor Vehicle Retailers (56%) rose by 28 and 22 percentage points respectively, while the proportion of Supermarkets (44%) dropped by 22 percentage points. On the other hand, 24% of the interviewed retailers registered a year-on-year sales decrease, down by 17 percentage points over August. The corresponding share of Motor Vehicle Retailers (33%) fell by 33 percentage points, and the proportions of Cosmetics & Sanitary Articles Retailers (22%) and Watches, Clocks & Jewellery Retailers (6%) each dropped by 28 percentage points.

Benefited from the long holidays for National Day and Mid-Autumn Festival in October 2017, the interviewed restaurants & similar establishments expected a slight improvement in their business, with 27% anticipating a year-on-year rise in receipts in October, up by 6 percentage points from September. Among the various types of establishments, 38% of the Japanese & Korean Restaurants predicted a year-on-year growth in receipts in October, up by 25 percentage points from September. On the other hand, the proportion of establishments expecting a year-on-year decline in receipts went down by 12 percentage points to 36%, with the corresponding shares of Local Style Cafes, Congee & Noodle Shops (31%) and Japanese & Korean Restaurants (44%) dropping by 18 and 13 percentage points respectively.

Retailers were more optimistic about their business prospects in October, with 33% predicting a year-on-year sales increase, up by 8 percentage points from September. Among the various types of retailers, 56% of the Watches, Clocks & Jewellery Retailers and 44% of the Cosmetics & Sanitary Articles Retailers expected a year-on-year sales rise in October, up by 33 and 24 percentage points respectively from September. Besides, 67% of the Motor Vehicle Retailers and 44% of the Department Stores expected a year-on-year growth in sales. On the other hand, 23% of the interviewed retailers anticipated a year-on-year decline in sales, down by 10 percentage points from September. The corresponding proportions of Cosmetics & Sanitary Articles Retailers (22%), Watches, Clocks & Jewellery Retailers (11%) and Adults' Clothing Retailers (15%) dropped by 18, 17 and 15 percentage points respectively, while the share of Department Stores (33%) grew 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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