Hong Kong retail sales slumped 8.9 per cent year-on-year by value in June to HK$33.7 billion.
That’s marginally higher than May’s fall of 8.3 per cent, but a slower rate than the 10.1 per cent of the first six months of this year. It marks the 16th consecutive month of year-on-year decline.
A spokesperson from the Census and Statistics Department said the fact sales were still notably lower than the year-ago level, reflected the fall in visitor spending and more cautious consumer sentiment amid subpar economic conditions.
“Nevertheless, on a seasonally adjusted basis, retail sales improved moderately in the second quarter compared to the first quarter.”
The HKRMA said in a statement that most of its member companies anticipate the downward trend to continue, but slow in the remainder of 2016, “taking into account a lower base recorded in the second half of 2015”.
While sales of consumer durable goods posted the biggest decline – 37.2 per cent – the larger jewellery, watches and valuable gifts category caused much of the damage, falling 20.4 per cent. Department store sales were down 10.5 per cent, electrical goods and cameras by 25.7 per cent and optical shops by 5.5 per cent. The decline in apparel sales appears to be largely over with the category down just 0.6 per cent.
Supermarket sales rose 1.9 per cent, food,liquor and tobacco sales by 2.9 per cent and cosmetics and medicines by 5 per cent.
“Looking ahead, the near-term retail sales performance will still depend on the performance of inbound tourism as well as the extent to which consumer sentiment will be affected by the lingering uncertainties about the economic outlook,” said the C&SD spokesman.