Hong Kong retail sector marks sixth consecutive month of growth

Recovery, after years of contraction, driven by bigger tourist numbers and surge in luxury sales

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Among subsectors driving the growth were jewellery and valuable gifts. Photo: Edward Wong

Published: 6:10pm, 3 Oct 2017Updated: 11:06pm, 3 Oct 2017

Hong Kong’s retail sector is on track for a steady recovery, with sales rising 2.7 per cent year on year for August, boosted by a strong local jobs market and improved tourist numbers, according to official figures.

The latest numbers confirmed the sector’s sixth consecutive month of growth, but expansion was smaller than the previous month. Sales added 4 per cent in July, year on year.

And analysts said they expected the sector’s recovery, after a two-year slump, to continue for the rest of 2017, thanks to the “wealth effect” of an upbeat stock market, the luxury sector’s long-awaited rebound and the launch of new iPhone devices.

“The near-term outlook for retail sales should remain positive given the favourable job and income conditions and stabilisation of inbound tourism,” a government spokesman said in a statement.

But he warned “various external uncertainties” were causing concern, without going into details.

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The Hong Kong Retail Management Association said the August growth was satisfactory, given that sales were affected by several typhoons and bad weather in the month. It said it expected sales to grow at a stronger 4 to 5 per cent in October.