Hong Kong’s retail sales fell for a 14th straight month in April, government data showed on Monday, as local consumers remained cautious and visitors from mainland China spent less, although the decline was smaller than in March.
Retail sales by value fell by 2.3 per cent in April from a year earlier to HK$28.9 billion (US$3.68 billion), after a 3.5 per cent fall in March.
In volume terms, sales slipped 3.3 per cent from a year earlier, compared with a revised 4.7 per cent decline in March.
While the territory saw a jump in visitors from mainland China many came just for the day and did not spend much, while local residents spent more across the border, taking advantage of the Hong Kong dollar’s relative strength against the Chinese yuan.
A Hong Kong government spokesman said “ongoing changes in consumption patterns and competition among businesses amid the uncertain macroeconomic environment will still pose challenges” to the retail sector.
However, Hong Kong government’s promotion of tourism and big events, and steady growth of the mainland economy will bolster consumer sentiment, the spokesman added.
April visitor arrivals stood at 3.85 million, up 13.5 per cent from the same month a year ago, data from the Hong Kong Tourism Board showed. That compared with 3.82 million in March, 3.67 million in February, and 4.74 million in January.
The number of mainland Chinese visitors stood at 2.81 million in April, up 13.3 per cent from a year ago. That compares with 2.75 million in March, 2.77 million in February and 3.73 million in January.
Sales of jewellery, watches, clocks and valuable gifts fell 1.7 per cent year-on-year in April after a 3.4 per cent drop in March.
Sales of clothing, footwear and allied products declined 5.5 per cent year-on-year in April after a 10.4 per cent plunge in March.
- Reporting by Hong Kong newsroom; Editing by Sharon Singleton and Susan Fenton, of Reuters.