FX.co ★ Hong Kong Retail Sales Fall Further

Retail sales in Hong Kong experienced a decline for the seventh consecutive month in September, according to preliminary figures released by the Census and Statistics Department on Friday.

The retail sales value fell by 6.9% year-on-year in September, marking an improvement from the 10% drop in August. The decline has persisted since March.

Online sales, which contributed 10.4% to the overall sales value in September, plummeted by 11.8% compared to the same period last year. This was a significant downturn from the 0.7% decrease recorded in the previous month.

The decrease in retail sales volume for the year also moderated, easing to 8.7% in September from the 11.7% drop seen in August.

Jewelry, watches, clocks, and valuable gifts experienced a sharp 17.9% decline in sales, while clothing, footwear, and related products saw an 8% reduction.

Supermarket sales fell by 1.1% from the previous year, with department store sales decreasing by 11.4%.

A government spokesperson noted that in the short term, the retail sector's performance will remain influenced by shifts in the consumption patterns of both residents and visitors.

However, the spokesperson added that the prospects for the Mainland economy have improved following recent stimulus measures. Additionally, a potential easing of the Hong Kong dollar, in line with the US dollar as the United States begins to cut interest rates, could help boost consumer sentiment and support expenditure.