The retail sales in August experienced a 10.1 percent decline compared to the previous year, falling short of the market expectations of 9 percent, according to the government data released on Thursday.
The value of total retail sales dropped to HK$29.2 billion despite the fall having narrowed following an 11.7 percent slump in July, according to the Census and Statistics Department.
Among all retail sectors, motor vehicles and parts were hit the worst and recorded a 35.1 percent decrease in August.
Sales of jewelry, watches and clocks, and valuable gifts fell by 24 percent, while sales of food, alcoholic drinks and tobacco increased by 0.2 percent in August over a year earlier.
The government attributed the decline to the continued impact of the changing consumption patterns, the relatively robust Hong Kong dollar, and increased outbound travels by residents during the summer holidays.
In addition, online sales accounted for 8 percent of the total retail sales value in August, estimated at HK$2.3 billion, dropping by 0.5 percent compared to last year.
A government spokesman reiterated that rising employment earnings, and an easing Hong Kong dollar exchange rate would also support the retail sector, despite it will still face challenges in the near term.
Official data also showed that sales decreased by 7.7 percent year-on-year for the first eight months of the year.
