Retail, food, beverage sales hit record highs for August

• By Chen Cheng-hui / Staff reporter

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Retail and food and beverage sales last month hit record levels for August, rising annually for the seventh consecutive month, although growth moderated from the previous month, data released on Wednesday by the Ministry of Economic Affairs showed.

Retail sales increased 6.5 percent from a year earlier to NT$416.8 billion (US$13.12 billion), as holiday purchases, new department store openings and sales of new mobile phones bolstered consumer spending, the ministry said.

Last month’s growth slowed from the previous month’s 7.8 percent, but was within the ministry’s 5 to 8 percent growth forecast.

People line up to enter the newly opened Far Eastern Garden City shopping mall at the Taipei Dome on Aug. 22.

Photo: CNA

Sales of cars, motorcycles, auto parts and accessories increased 5.8 percent, while purchases at convenience stores, big-box stores, department stores, e-commerce and mail-order platforms, and computer and home appliance stores grew from 8.4 percent to 10.9 percent from a year earlier, the ministry said.

Even with purchases of cars, motorcycles, auto parts and accessories excluded, retail sales still grew 6.6 percent annually last month — slightly higher than overall sales growth, indicating that consumer demand remained strong, it said.

In the first eight months of this year, retail sales rose 4.9 percent to NT$3.298 trillion, a record for the period, ministry data showed.

Food and beverage sales rose 1.8 percent to NT$95 billion last month, meeting the ministry’s 1 to 4 percent annual growth projection, but was lower than the previous month’s 2.5 percent increase, the report said.

In this sector, restaurants and beverage shops posted sales growth of 0.3 percent and 7.4 percent respectively, while sales of catering and group meal services providers increased 11 percent, it said.

From January to last month, food and beverage sales rose 3.7 percent to NT$737.2 billion, also a record for the period, ministry data showed.

However, firms expressed reservation regarding their business outlook this month, as consumer spending typically slows after the summer holidays.

The ministry’s diffusion index — a gauge of companies’ sales expectations for the following month — declined to 49.8 for the retail sector and 33.7 for the food and beverage sector, both of which were below the neutral threshold of 50.

As a result, retail sales this month are expected to grow 3.6 to 6.6 percent year-on-year to NT$410.4 billion to NT$422.3 billion, and food and beverage sales are projected to increase 3 to 6 percent to between NT$85.4 billion and NT$87.9 billion, the ministry said.