Hong Kong retail sales saw a healthy improvement in May, with the positive trend forecast to continue amid a favourable economic environment.

According to the Census and Statistics Department, retail sales rose 7.9 per cent year-on-year to HK$33.8 billion (US$4.3 billion) in May, extending the revised  8.7 per cent growth in April.

For the first five months, it was provisionally estimated that retail sales increased 10.6 per cent compared with the same period last year. 

After netting out the effect of price changes over the same period, retail sales improved 4.8 per cent in May.

A government spokesman said that retail sales continued to increase solidly in May, with most retail categories showing gains.

Valuable gifts recorded the biggest improvement (25.8 per cent), followed by electrical goods and other consumer durable goods (13 per cent), optical shops (10.3 per cent), and commodities in department stores (9.2 per cent).

Apparel and footwear, cosmetics, and furniture saw modest growth of between 3 per cent and 5 per cent.

On the other hand, sales of fuels and Chinese medicines and herbs plunged 12.2 per cent and 9.5 per cent, respectively. Sales of food, alcoholic drinks and tobacco slid 0.3 per cent.

Looking ahead, the spokesperson expects the ongoing economic expansion and sustained growth in local labour earnings, together with an increase in inbound visitors, to continue benefiting retail businesses. 

The Government will closely monitor the potential implications of the evolving external uncertainties on the local consumption market.