Hong Kong retail sales were down again in July – but the decline continues to slow, according to data from The Census and Statistics Department.
The value of total retail sales was provisionally estimated at HK$34.6 billion in July, down 7.7 per cent on July last year.
In June, retail sales fell by 8.9 per cent year-on-year and for the first seven months of 2016 overall sales decreased 10.1 per cent.
“The performance in July was mainly dragged by the fall in visitor spending on some big-ticket items, and also reflected the more cautious local consumer sentiment amid an uncertain economic outlook,” a government spokesman said, commenting on the data.
After netting out the effect of price changes over the same period, the volume of total retail sales in July 2016 decreased by 8.5 per cent year-on-year
Predictably, sales of jewellery and watches led the decline, falling 26.2 per cent, followed by electronics, down 21.8 per cent Department store sales eased back 6.9 per cent.
In contrast, supermarket sales rose 1.9 per cent, apparel by 1.8 per cent, medicines and cosmetics by 9 per cent and food & beverages for consumption at home by 1.3 per cent.
The sheer number of categories reporting a rise suggests a levelling out of domestic retail sales while spending by tourists on luxury items continues to fall.
Based on the seasonally adjusted series, the value of total retail sales increased by 0.8 per cent in the three months to July over the preceding three-months, while the volume of total retail sales remained virtually unchanged over the same period.
“Looking ahead, the near-term outlook for retail sales will continue to depend on the performance of inbound tourism and on whether the various external uncertainties would affect local consumer sentiment,” the government spokesman said.
