Hong Kong’s retail sales by value were above expectations in January, growing 14.5 per cent on a year earlier.

According to the Census and Statistics Department, the sales growth was driven by the increased local consumption during the Lunar New Year holidays which fell in late January.

The growth was above December’s 5.7 per cent rise.

Meanwhile, retail sales by volume rose 16.8 per cent in January from a year earlier, up from December’s 6.1 per cent rise.

A government spokesman said tight labor markets and sustained growth for inbound tourism will continue to support the retail business in the near term.

“However, we need to closely monitor the external economic developments, especially any change in the US monetary policy, and how they may affect the global economic and financial market situations and hence local consumer sentiment down the road,” the spokesman said.