Taiwan reports highest-ever June retail sales

Taipei, July 27 (CNA) Taiwan reported the highest ever retail sales for June on the back of continued solid domestic spending, according to the Ministry of Economic Affairs (MOEA).

In addition, the latest monthly revenue posted by the local food and beverage industry also hit the highest level for June as consumption was boosted by the long Dragon Boat Festival holiday weekend, the MOEA said.

Data compiled by the MOEA showed retail sales for June totaled NT$401.5 billion (US$12.24 billion), up 3.9 percent from a year earlier, marking the 34th consecutive month of a year-on-year increase.

Amid strong domestic demand, the 34 months were the longest growth streak for retail sales in Taiwan's history, said Huang Wei-jie (黃偉傑), deputy head of the MOEA's Department of Statistics.

In the first half of this year, aggregate retail sales hit NT$2.37 trillion, up 3.2 percent from a year earlier.

Huang said local retailers benefited from their promotional campaigns as well as the three-day Drag Boat Festival holiday weekend during the month.

In June, sales posted by department store chains and supermarket owners rose 6.3 percent and 8.2 percent, respectively, from a year earlier to NT$33.1 billion and NT$20.7 billion, the MOEA data showed.

In addition, convenience store operators and hyper market chains rose 4.7 percent and 5.3 percent, respectively, from a year earlier to NT$35.4 billion and NT$18.9 billion in June, according to the MOEA.

In the "other retail category," referring to education, entertainment and building materials, sales rose 6.5 percent from a year earlier to NT$13.8 billion as the MOEA attributed the growth to a travelling boom and a sales increase in duty free shops.

On the back of an increase in electric vehicles, sales posted by the motorcycles and passengers industry in the local retail market rose 4.4 percent from a year earlier to a new high of NT$86.6 billion in June, the MOEA said.

In June, sales generated by the food and beverage industry hit NT$87.0 billion, up 6.8 percent from a year earlier, and in the first half of the year, revenue in the industry totaled NT$515.8 billion, up 5.1 percent from a year earlier, the data showed.

Huang said restaurants and beverage shops saw their sales increasing as buying was boosted by the Dragon Boat Festival holiday and banquets thrown by new graduates to express gratitude to their teachers as well as business opportunities created by hot temperatures in the summer.

Sales posted by restaurants and beverage vendors rose 6.6 percent to NT$70.0 billion and NT$11.3 billion, respectively, in June, while revenue generated by catering services providers also rose 10.8 percent from a year earlier to NT$5.7 billion due to strong demand from airlines.

Looking ahead, Huang said geopolitical tensions and extreme climate are likely to affect supplies of raw materials, and in turn boost product prices and impact consumption in the second half of this year.

But for July, Huang said, retail sales are forecast to range between NT$405.1 billion and NT$416.8 billion, up 3.7-6.7 percent from a year earlier as many retailers, including convenience stores, have launched large sales campaigns for the upcoming Ghost Month, which will occur from Aug. 4 to Sept. 2.

In Taiwan, Ghost Month is marked by individuals or companies offering articles of tribute, such as instant noodles, cookies and fruits, to worship ghosts and spirits which will be released from hell when the door of the underworld is open on the first day of the month.

Huang said sales posted by the food and beverage industry are expected to range between NT$88.3 billion and NT$90.9 billion, up 0.8-3.8 percent from a year earlier.

He added that the forecast growth in July will moderate from 3.9 percent in June due to a fall in holidays.

Meanwhile, sales posted by the local wholesale sector rose 8.5 percent from a year earlier to NT$1.06 trillion, the MOEA said.

The growth came after machinery suppliers enjoyed an increase in shipments as their clients in the manufacturing sector were keen to buy equipment for emerging technology development, including artificial intelligence applications and high performance computing devices, the MOEA said.

In the first half of this year, revenue in the local wholesale sector rose 9.9 percent from a year earlier to NT$6.24 trillion, the MOEA added.