Hong Kong Retail Sales Decline

HONG KONG (Reuters) – Hong Kong's retail sales for September dropped 6.9% year-on-year, highlighting the persistent effects of changing consumption patterns, according to government data released on Friday.

Sales totaled HK$29.6 billion ($3.81 billion), marking a seventh consecutive month of decline following a revised 10.0% drop in August, an 11.7% fall in July, a 9.7% fall in June, an 11.5% decrease in May, a 14.7% drop in April, and a 7% decline in March.

A government spokesman indicated that the retail sector's near-term performance will continue to be influenced by the changing consumption habits of both residents and visitors. However, he noted that stimulus measures from China would help boost spending.

In terms of volume, retail sales decreased by 8.7% year-on-year in September, compared to a revised 11.7% drop in August and declines of 13.2% in July, 11.2% in June, 12.9% in May, 16.5% in April, and 8.7% in March.

For the first nine months of 2024, total retail sales decreased by 7.6% compared to the same period in 2023, with the total volume of retail sales falling by 9.2%, based on provisional estimates.

Visitor arrivals for September were reported at 3.06 million, reflecting a 10.5% increase from the previous year, per the Hong Kong Tourism Board. This is compared to 4.45 million in August and 3.92 million in July.

Mainland Chinese visitors stood at 2.29 million in September, up 6.1% year-on-year. This is down from 3.66 million in August and 3.14 million in July.

Sales of jewellery, watches, clocks, and valuable gifts fell 17.9% in September year-on-year after a 24.4% decline in August. Likewise, sales of clothing, footwear, and related products saw an 8% drop in September following a 12.6% decrease in August.

($1 = 7.7774 Hong Kong dollars)