Retail sector continues to face challenges as growth in July falls below expectations

Hong Kong’s retail sales grew for the third consecutive month in July but fell short of market estimates, increasing by just 1.8 percent, official data shows.

The value of total retail sales rose to HK$29.7 billion during the month, failing to meet market expectations of a 2.5 percent year-on-year increase, according to the Census and Statistics Department.

Sales value in May climbed 2.4 percent, ending 14 consecutive months of decline, while growth narrowed to 0.7 percent in June.

Online retail sales jumped 13.2 percent to HK$2.6 billion in July, accounting for 8.7 percent of the total. However, while online sales for the first seven months of the year rose 2.1 percent, total retail sales value declined 2.6 percent.

A government spokesman voiced expectations that the industry would remain stable, noting that the city’s push to boost tourism via mega events will favor the retail sector.

STAFF REPORTER