November retail sales jump as spenders stay put in city

Hong Kong's retail sales grew faster at 15.9 percent in November from a year ago with fewer people traveling abroad due to a lack of long holidays.

The value of retail sales increased to HK$34.2 billion in a 12th consecutive month of rises, according to provisional figures from the Census and Statistics Department. That is compared with a 5.8 percent growth in October.

In terms of volume, retail sales climbed 12.4 percent in November, compared with 2.9 percent in October.

November's retail sales recorded faster growth due to a low comparison base during the same period in 2022, said Bond Law, an executive director of the Hong Kong Retail Management Association, who also expressed concerns about Christmas sales in December due to the trend of Hong Kong people heading north to spend their holiday in mainland cities as well as overseas.

The association maintained its forecast of a single-digit to a low double-digit decline in retail sales in the first half of this year as high interest rates and geopolitical tensions continue to weigh on the local economy, said Law.

For the first 11 months of 2023, official data showed the value of retail sales rose 17.1 percent year-on-year.

Specifically, sales of jewelry, watches, clocks and valuable gifts rose 60.8 percent yearly in November and sales of apparel jumped 54.1 percent.

Meanwhile, sales of motor vehicles and parts dropped 22.9 percent during the month - the biggest decline.

This came as apparel retail Giordano International (0709) expects its net profit last year to increase by as much as 29 percent from a year ago thanks to improving performances in Greater China.

The net profit is expected to reach between HK$325 million and HK$345 million for the year ended December 2023. That is compared with a profit of HK$268 million in 2022.

In other news, Hong Kong's private sector activity last month rose to an eight-month high on the improved demand but local firms showed deeper worries for this year.

The S&P Global Purchasing Managers' Index rose to 51.3 in December, up from 50.1 in November, with two consecutive months above the 50 mark that separates expansion from contraction.

Samuel Tse Ka-hei, an economist at DBS Bank in Hong Kong, expects the PMI to hover between 50 and 51 in the short term.

Tse added that the government-led activities to boost the night economy would not see an effective impact until the second quarter at the earliest.