October retail sales tide in Hong Kong turns up

October retail sales in Hong Kong rose by 5.9 per cent year on year, more than double the pace of September, which was affected by Typhoon Mangkhut. A government spokesman indicated that growth in retail sales picked up somewhat in October after a deceleration in the preceding month, supported by the faster increase in visitor arrivals and continued income growth.

The Census and Statistics Department (C&SD) estimated the total value of October Hong Kong retail sales at HK$39.7 billion.

After netting out the effect of price changes over the same period, the volume of October retail sales in Hong Kong increased by 5.2 per cent.

C&SD’s revised estimate of the growth in the value of retail sales in September was unchanged at 2.4 per cent, the lowest figure year to date.

For the first 10 months of this year retail sales rose by 10.6 per cent year on year, while the volume (netting out inflation) rose by 9.1 per cent.

The spokesman strong inbound tourism and favourable job and income conditions should continue to support the retail sector in the near term.

“Yet, consumer sentiment could increasingly be affected by the external uncertainties and weaker asset markets.”

By broad type of retail outlet (in descending order of the category’s impact on the overall figure) sales of jewellery, watches and valuable gifts increased by 3.3 per cent in October. This was followed by electrical goods and other consumer durable goods, not elsewhere classified (up 16.1 per cent); commodities in department stores (up 3.5 per cent); apparel (up 2.3 per cent); medicines and cosmetics (up14.9 per cent); other consumer goods, not elsewhere classified (up 12.7 per cent); motor vehicles and parts (up 13.6 per cent); fuels (up 10.3per cent); footwear and accessories (up 9.3 per cent); books, newspapers, stationery and gifts (up 5.8 per cent); furniture (up 0.8 per cent); Chinese drugs and herbs (up 0.6 per cent); and optical shops (up 3.2per cent).

The only categories to record a decline in sales were commodities in supermarkets, down 0.9 per cent, and food, alcoholic drinks and tobacco, down 2 per cent.