Hong Kong retail sales rise for fifth month as COVID-19 threat eases

HONG KONG: Hong Kong's retail sales climbed for the fifth straight month in June, helped by an improved labour market and a stabilising COVID-19 situation although demand was hampered by weak tourism.

Retail sales in June rose 5.8 per cent from a year earlier to HK$28.1 billion (US$3.61 billion), government data showed on Monday (Aug 2). June's increase compared with revised 10.4 per cent growth in May.

"The consumption voucher scheme will help stimulate local consumer sentiment and provide support to the retail sector," a government spokesman said, referring to electronic vouchers given to certain consumers to spend in retail stores.

He urged the community to keep the epidemic under control and strive towards more widespread vaccination, in order for a broader economic recovery.

In volume terms, retail sales in June grew 2.8 per cent from a year earlier, compared with a revised 7.7 per cent surge the previous month.

For the first half of 2021, total retail sales increased 8.4 per cent in value terms and rose 7.1 per cent in volume.

READ: Hong Kong GDP up 7.5% in Q2 as post recession recovery continues

Online retail sales in June jumped 63.8 per cent in value year-on-year, compared with a revised growth of 52.9 per cent in May.

Sales of jewellery, watches, clocks and valuable gifts, which before the pandemic relied heavily on Chinese tourists from China, climbed 31.8 per cent in June versus a 54.8 per cent surge in May, the data showed.

Clothing, footwear and allied products rose 15.3 per cent in June.

Tourist arrivals in June slumped 57.6 per cent from a year earlier to 6,200 after posting a 34.8 per cent drop in May. The city recorded its first growth in arrivals in April, of 38.3 per cent, after 21 straight months of decline but overall numbers were tiny.

Hong Kong's economy lost some momentum in the second quarter but still expanded by 7.5 per cent from a year earlier, as domestic and global activity continued to recover. The government maintained its full-year growth forecast at 3.5 per cent to 5.5 per cent.

Seasonally adjusted unemployment slipped to 5.5 per cent in April to June, from 6 per cent in March to May and 6.4 per cent in February to April with the labour market expected to improve further as coronavirus cases remain close to zero.

The government has urged more people to get vaccinated to pave the way for a broader based economic recovery. About a third of the population has received the recommended two doses and less than half have had at least one dose.

BOOKMARK THIS: Our comprehensive coverage of the COVID-19 pandemic and its developments

Download our app or subscribe to our Telegram channel for the latest updates on the coronavirus outbreak: https://cna.asia/telegram