Hong Kong retail sales jump on improved labour market; consumer vouchers to support
FILE PHOTO: A man walks through a food market in an alley in Sheung Wan in Hong Kong, China November 6, 2019. REUTERS/Thomas Peter
HONG KONG : Hong Kong's retail sales in July jumped 4.1 per cent from a year earlier and snapped two consecutive months of decline, data released on Wednesday showed, on the back of an improving labour market.
Retail sales in July stood at HK$28.3 billion ($3.61 billion), compared with a 1.2 per cent drop in June, according to the official data.
For the first seven months, however, the total retail sales value decreased 1.7 per cent compared with the same period last year.
A series of consumption vouchers are expected to buoy spending going forward, the government said, although the outlook could be overshadowed by tighter financial conditions and COVID-19 cases.
In volume terms, retail sales in July rose 1.0 per cent from a year earlier, snapping two consecutive months of decline. For the first seven months of the year, the volume decreased 4.7 per cent from a year earlier.
COVID-19 restrictions have weighed on the economy since early 2020, grinding tourism to a halt and battering sales at bars, restaurants and shops.
Daily COVID cases have risen to nearly 10,000.
The city's economy contracted 1.3 per cent in the second quarter from a year earlier, marking the second consecutive quarter of year-on-year contraction for the Asian financial hub's gross domestic product (GDP).
In July, sales of jewellery, watches, clocks and valuable gifts, which before the pandemic relied heavily on tourists from the mainland, jumped 28.3 per cent from a year earlier, following a 2.2 per cent increase in June, the data showed.
Sales of clothing, footwear and related products in July rose 3.5 per cent from a year earlier after a 4.7 per cent drop in June.
Tourist arrivals in July rose 454.4 per cent from a year earlier to 48,048, compared with a 563.1 per cent jump in June.
Online retail sales in July increased 8.6 per cent year-on-year in value terms, compared with a 0.3 per cent increase in June. It was up 21.8 per cent for the first seven months of 2022.
($1 = 7.8477 Hong Kong dollars)
