Hong Kong’s retail sector experienced a 4.5 percent year-on-year increase in sales in July, marking the 15th consecutive month of growth, according to provisional data released by the Census and Statistics Department. The retail sales value for the month reached HK$31 billion, though the pace of expansion slowed slightly amid adverse weather conditions and ongoing outbound travel by local residents.

For the first seven months of 2023, retail sales grew by 8.9 percent compared to the same period last year. This follows a 4.6 percent increase recorded in June, when sales value hit HK$31.5 billion. In the first half of the year, retail sales rose by 9.6 percent in value and 7.2 percent in volume year on year.

A government spokesman noted that retail growth momentum remained stable in July and attributed the resilience to factors including continued economic expansion, rising household incomes, and stable labor market conditions. The official also highlighted upcoming large-scale events, which are expected to boost visitor arrivals and provide further support to retail businesses.

Sales of jewellery, watches, clocks, and valuable gifts led growth in July with a 19.7 percent increase year on year. Electrical goods and other consumer durables followed with an 11.5 percent rise, and consumer goods not elsewhere classified grew by 10.5 percent. On the other hand, motor vehicles and parts suffered the largest decline, falling 18.2 percent, while sales of fuels dropped by 18 percent. Chinese drugs and herbs also saw a decrease of 13.7 percent.

Despite the positive figures, Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association, described the July growth as relatively weak considering the low comparison base from the previous year, when July was the second worst month for retail sales. She pointed out that the HK$31 billion sales figure was the lowest monthly total so far this year, with around 25 rainy days in July and the onset of the summer holiday season prompting many residents to travel overseas, reducing local consumer spending.

Tse also referenced the association’s latest survey, which covered approximately 3,100 shops employing 75,000 staff. The survey indicated that retail performance in August fell short of expectations, with about 8 percent of respondents reporting worse-than-expected sales, while over 30 percent said results met forecasts. Although foot traffic in popular tourist areas such as Tsim Sha Tsui, Mong Kok, and Causeway Bay remained steady, visitor spending power was described as relatively weak.

Meanwhile, Hong Kong’s overall economy expanded by 4.3 percent year on year in the second quarter, contributing to a 5.1 percent growth in the first half of 2023.