Hong Kong retail sales growth stalls

Hong Kong retail sales growth stalled in August, down 0.1 percent yearly, following a revised estimated increase of 4.1 percent in July.

According to the Census and Statistics Department, August’s figures were impacted by a high base compared to a year ago, but for the first eight months of the calendar year, sales are down by 1.5 percent on year.

Calculated with the impact of price changes removed, August sales were down by 2.9 percent, and July sales were up by 1.1 percent. Sales for the first eight months of the year combined were down by 4.5 percent.

“Looking ahead, the moderating local epidemic situation, improving labor market conditions and [the government’s] The Consumption Voucher Scheme will continue to support consumption sentiment and demand in the near term, but the increasingly tight financial conditions will pose constraints,” said a government spokesperson. “It is crucial for the community to work in unison with the government to contain the epidemic, to create greater room for the recovery of consumption-related activities.”

Online sales accounted for 9.1 percent of total turnover in August and were 21.3 percent higher than the same month last year. That followed an increase of 8.4 percent in July, with year-to-date online sales up by 21.7 percent.

Categories with the largest declines in August were apparel (down by 7.4 percent), shoes and accessories (12.7 percent), and books and stationery (17.4 percent). Categories showing growth included jewelry and watches up by 4.3 percent, and motor vehicles and parts, up by 43.7 percent.