Hong Kong retail sales fall for seventh straight month on year-on-year basis but decline narrows

Retail sales dropped for a seventh straight month on a year-on-year basis in September, falling by 6.9 per cent as a growing trend of Hongkongers heading to mainland China for shopping and entertainment continued to affect business although new stimulus measures may help to boost sentiment.

Provisional figures released by the Census and Statistics Department on Friday showed sales of HK$29.6 billion in September. In August, a 10 per cent year-on-year fall was recorded.

September’s figures marked the seventh consecutive contraction following 15 months of continuous growth after the coronavirus pandemic.

A government spokesman said the decline in retail sales had narrowed in September but the sector’s near-term performance would continue to be affected by changes in the consumption patterns of residents and visitors.

“Nevertheless, an improved outlook for the mainland economy following the recent introduction of a wide range of stimulus measures, and a possible easing of the Hong Kong dollar alongside the US dollar with the commencement of the US interest rate cut, will be conducive to boosting sentiment and supporting spending,” he said.

“In addition, the central government’s various measures benefiting Hong Kong, the [Hong Kong] government’s various initiatives to boost market sentiment and increasing employment earnings will also benefit the retail sector.”