FX.co ★ Hong Kong Retail Sales Log Further Sharp Decline In May

The value of Hong Kong's retail sales continued its steep decline in May, according to preliminary data released by the Census and Statistics Department on Tuesday.

Retail sales fell by 11.5% year-on-year in May, following a 14.7% drop in April. This marks the third consecutive month of decline.

Conversely, online sales, which constituted 8.7% of total sales in May, surged by 21.9% compared to the previous year. This is a notable increase from the 11.5% growth observed in the prior month.

The annual decrease in retail sales volume moderated to 12.9% in May, down from the previous month's 16.5%.

Notably, sales of jewelry, watches, clocks, and valuable gifts plummeted by 21.4%, while sales of clothing, footwear, and related products declined by 17.9%.

A government spokesperson attributed the sharp drop in sales value to changing consumption patterns among both visitors and residents, as well as the strength of the Hong Kong dollar.

Looking forward, the spokesperson indicated that the retail sector may continue to face challenges in the short term.

"However, the Central Government's recently announced measures to benefit Hong Kong, including enhancements to the Individual Visit Scheme and increased duty-free allowances for luggage articles for Mainland resident visitors, should help stimulate the retail market," the spokesperson added.