Taipei, Nov. 24 (CNA) The retail sector in Taiwan felt the impact from volatility in the local stock market, seeing revenue growth failing to meet an earlier forecast, according to the Ministry of Economic Affairs (MOEA).
Data compiled by the MOEA showed retail sales for October rose only 0.9 percent from a year earlier to NT$371.5 billion (US$12.02 billion), and the growth was shy of the ministry's earlier forecast of a 1.5 percent increase.
The October retail sales growth also moderated from a 3.0 percent increase in September, the data indicated.
The MOEA said a tumble in the local equity market undermined consumer sentiment and kept them from spending more, which capped or even sent revenue in major merchandisers lower in the month.
In October, the benchmark weighted index on the Taiwan Stock Exchange or the Taiex fell about 1,200 points or 10.94 percent from a month earlier in the wake of a drop on Wall Street amid escalating trade tensions between the United States and China.
In a single trading session on Oct. 11, the Taiex plunged 660 points as investors were shocked by a dive on Wall Street. That day, the local main board fell to close below the 10,000-point mark for the first time since the Taiex ended above that level in May 2017.
As a result, the MOEA said, sales posted by department stores rose only 0.1 percent from a year earlier to NT$39.6 billion in October, while revenue generated by supermarket operators dropped 0.4 percent from a year earlier to NT$18.7 billion.
Meanwhile, sales raked in by convenience store chains rose 3.2 percent from a year earlier to NT$27.2 billion in October, while revenue posted by hypermarket chains plunged 10.3 percent year-on-year to NT$14.9 billion.
The MOEA said due to weakening demand for smartphones, sales posted by information/communication device and home appliance suppliers fell 2.0 percent from a year earlier to NT$27.9 billion.
Sales generated by car and motorcycle vendors rose 1.7 percent from a year earlier to NT$52.4 billion, while sales posted by online vendors rose 5.2 percent to NT$21.0 billion, the MOEA said.
It added that the local food and beverage industry was affected by a relatively high comparison base over the same period of last year, seeing its revenue falling 1.3 percent from a year earlier to NT$37.9 billion.
As for the wholesale sector, which got support from international brands' efforts to launch new mobile devices to boost buying, sales rose 7.0 percent from a year earlier to NT$919.9 billion, the MOEA said.
In the first 10 months of this year, retail sales rose 3.6 percent from a year earlier to NT$3.52 trillion, while revenue generated by the wholesale sector and the food and beverage industry rose 4.6 percent and 4.4 percent, respectively, to NT$8.63 trillion and NT$393.2 billion, according to the MOEA.
