February Down for Hong Kong retail spending
In this article (5)
Hong Kong retail spending shrank in February according to data from Mastercard.
While the official figures will not be released by the Census and Statistics Department (C&SD) until next week, Mastercard SpendingPulse, which measures consumer spending across all payment types, including cash, found that retail sales contracted by 3.2 per cent year on year in February.
However, Hong Kong retail spending data is always affected in January and February by the changing timing of Lunar New Year, which is why C&SD advises both January and February figures should be counted together before comparing with previous years.
According to Mastercard, which did not amalgamate January and February data for a fair comparison with last year, the drop in February retail sales was seen across the board, with clothing, grocery, health & beauty, jewellery and furniture all experiencing a year-on-year decrease.
“After an impressive 21-month growth trend, we have seen a decline in retail sales in Hong Kong, particularly around Chinese New Year, due to various reasons ranging from the unusually warm winter to consumer confidence,” said Sasha Krstic, executive VP, services – Asia Pacific at Mastercard.
Questions & Answers
Q.What was the percentage decrease in Hong Kong retail spending during February?
What was the percentage decrease in Hong Kong retail spending during February?
Mastercard SpendingPulse data indicates that retail sales in Hong Kong contracted by 3.2 per cent year-on-year in February. This drop was observed across various sectors including clothing, grocery, and jewellery.
Q.Which retail sectors experienced a decline in sales during February?
Which retail sectors experienced a decline in sales during February?
The decline in February retail sales was widespread. Sectors such as clothing, grocery, health & beauty, jewellery, and furniture all saw a year-on-year decrease according to Mastercard's data.
Q.Why does the Census and Statistics Department advise combining January and February retail figures?
Why does the Census and Statistics Department advise combining January and February retail figures?
The timing of Lunar New Year changes annually, significantly impacting retail spending in January and February. Combining both months' figures allows for a more accurate comparison with previous years, smoothing out these seasonal variations.
Q.What reasons were suggested for the drop in Hong Kong retail sales?
What reasons were suggested for the drop in Hong Kong retail sales?
Sasha Krstic of Mastercard attributed the decline, particularly around Chinese New Year, to various factors. These included an unusually warm winter and issues related to consumer confidence.
Reader pulse
Is Hong Kong's retail dip a temporary blip or a trend?
21,400 votes so far