Retail rebounds in May after 14-month-long slide

Hong Kong’s retail sales returned to growth in May, ending 14 consecutive months of decline and outperforming market forecasts, as improving tourism and government efforts to boost spending lifted sentiment.

The value of total retail sales rose 2.4 percent year-on-year in May to HK$31.3 billion, beating market expectations of a 1.8 percent decline and reversing a revised 2.3 percent drop in April, according to the Census and Statistics Department.

Online retail sales edged up 0.3 percent to HK$2.6 billion in May, accounting for 8.3 percent of the total. However, for the first five months of the year, total retail sales value still declined 4 percent, while online sales fell 1.7 percent.

A government spokesman said that looking ahead, while the sector continues to adapt to the changes in consumption patterns, the government's proactive efforts in promoting tourism and mega events, in tandem with the increase in employment earnings and sustained steady growth of the mainland economy, will help bolster consumption sentiment and support the consumption market.

STAFF REPORTER