Little Dip in Hong Kong Retail Sales Last Month

Hong Kong retail sales in March slipped by a negligible 0.2 percent, a slower decline than the 1.6 percent of January and February combined.

But figures from the Census and Statistics Department show first-quarter retail sales were still down 1.2 percent year on year.

After netting out the effect of price changes over the same period, the provisional estimate of the volume of retail sales in March decreased by 0.8 percent compared with a year earlier, and for the first quarter by 1.6 per cent.

March’s decline was driven largely by the watches, jewelry and valuable gifts sector, which fell by 2.6 percent, and apparel, down by 2.3 percent. Sales of electronic goods fell by 15.6 per cent, of optical shops by 5.7 per cent and of books and stationery by 2.5 percent.

Conversely, sales by supermarkets increased 3.3 percent, of medicines and cosmetics by 2.5 percent, in department stores by 5 percent, and of food, liquor and tobacco by 3.6 per cent.

Footwear and accessories sales rose by 7.1 percent, furniture by 4.3 percent and Chinese drugs and herbs by 1 percent.

A government spokesman said the decline in Hong Kong retail sales in March “reflected the cautious consumption sentiment amid various external uncertainties”.

He said that looking forward, retail sales business will likely continue to be affected by various external uncertainties in the near term, but the largely stable labor market and the sustained growth in inbound tourism should provide some support.