Hong Kong's retail sales in August are estimated to post their highest annual growth in 20 months, a surge that experts say signals a stabilizing sector.
The Census and Statistics Department projected a HK$30.3 billion value of total retail sales in August, jumping 3.8 percent from a year ago, adding the revised estimate of the July value increased by 1.8 percent from a year ago.
The growth, which has beaten market expectations, was fueled in part by a 16 percent rebound of jewellery, watches and clocks, and valuable gifts, according to official data released on Thursday.
That would also bring the total sales value in the first eight months this year down by 1.9 percent, the department estimated.
Meanwhile, online retail sales are estimated to jump 8.9 percent to HK$2.6 billion in August, accounting for 8.4 percent of the total.
Across types of retail outlets, sales value of jewelry, watches and clocks, and valuable gifts advanced 16.4 percent in August, followed by sales of other consumer goods not elsewhere classified, which rose 14.2 percent, and that of medicines and cosmetics, up 5.0 percent.
On the other hand, the value of commodities in supermarkets decreased by 0.8 percent in the month. This was followed by sales of food, alcoholic drinks and tobacco, down 3.6 percent.
A government spokesman said the retail sales improved in August and expects stabilized local consumption sentiments and growing tourism to further boost the retail sector.
Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association, said the positive growth figures were encouraging.
Although the growth rate was not particularly high, it indicated that the retail sector has stabilized, she added.
She attributed the 16.4 percent increase in sales value of jewelry, watches, and luxury gifts primarily to rising gold prices.
Tse noted that many other categories saw only minor increases or decreases, suggesting the retail sector has stabilized, though it has not yet reached a level of recovery.
