Hong Kong Feb retail sales fall 5.7% y-o-y
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A government spokesman indicated that the performance of retail sales was still constrained by a lack of growth in tourist spending despite a modest recovery in visitor arrivals in recent months.
Taking the first two months of 2017 together to neutralise the distortions by the timing of the Lunar New Year, the volume of retail sales declined by 3.6 per cent year-on-year, similar to that in the fourth quarter of 2016.
Looking ahead, the performance of retail sales will depend on the recovery pace of inbound tourism as well as whether consumer sentiment will be affected by the various external uncertainties.
At present, local consumer sentiment remains well underpinned by the prevailing favourable job and income conditions. The government will continue to monitor the situation closely.
Questions & Answers
Q.What is the primary reason for the ongoing decline in retail sales performance?
What is the primary reason for the ongoing decline in retail sales performance?
The government spokesman indicated that a lack of growth in tourist spending continues to constrain retail sales, despite a modest recovery in visitor arrivals in recent months.
Q.How did retail sales perform over the first two months of 2017, accounting for the Lunar New Year effect?
How did retail sales perform over the first two months of 2017, accounting for the Lunar New Year effect?
For January and February 2017 combined, the volume of retail sales decreased by 3.6% year-on-year, which was similar to the decline seen in the fourth quarter of 2016.
Q.What factors are expected to influence future retail sales performance in Hong Kong?
What factors are expected to influence future retail sales performance in Hong Kong?
Future retail sales will depend on how quickly inbound tourism recovers and if external uncertainties negatively impact consumer sentiment. The government will monitor the situation closely.
Q.What is the current state of local consumer sentiment?
What is the current state of local consumer sentiment?
Local consumer sentiment currently remains well supported by the favourable job market and income conditions. This helps to underpin spending despite other economic factors.
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