Retail sales up 7.1 percent in November, missing market expectation

Hong Kong's retail sales rose ten months in a row, up by 7.1 percent year on year to HK$30.7 billion in November, government data showed, but it missed market estimation of a 9.7 percent growth.

After netting out the effect of price changes, the total retail sales in November increased by 4.2 percent from a year earlier, which is also below the market expectation of a 6.5 percent rise.

Online retail sales, which accounted for 11.2 percent in value terms in November, jumped 27.6 percent from a year ago.

For the first 11 months of 2021, total retail sales increased by 8.3 percent compared with the same period in 2020, with online sales up 40.1 percent from an earlier year.

A government spokesman said that consumption sentiment remained positive thanks to the entrenched economic recovery and the Consumption Voucher Scheme.

Looking ahead, the spokesman pointed out that provided that the local epidemic situation remains under control, the improving economic and labour market conditions should continue to provide support to the retail sector.

Specifically, sales of jewellery, watches, clocks and valuable gifts, which before the pandemic relied heavily on tourists from the mainland, climbed 14.4 percent in November, the data showed.

Wearing apparel also rose 17.9 percent, with medicines and cosmetics up 12.9 percent. Sales of commodities in supermarkets, however, decreased by 3.2 percent in November.

Tourist arrivals in November soared 59.2 percent from a year earlier to 9,492. However, total visitor arrivals from January to November plunged 97.7 percent year-on-year to 81,950.