Hong Kong retail sales rise 4.6% in June as growth streak extends to 14 months Hong Kong’s retail sales rose by 4.6 per cent year on year in June, extending the growth streak to 14 months, with the government expecting continued economic growth, rising incomes and a steady increase in visitors to support the sector. The value of retail sales for the month reached HK$31.5 billion (US$4.01 billion), with retail sales in the first half of the year rising by 9.6 per cent compared with the same period in 2025, according to provisional figures released by the Census and Statistics Department on Tuesday. “Growth was broad-based across many retail categories. Continued economic expansion, rising local incomes and a steady increase in inbound visitors are expected to provide support to the sector,” a government spokesman said. “Yet, external uncertainties constitute downside risk. The government will continue to closely monitor the potential impacts of external developments on the local consumption market,” he added, noting that the sector remains on a positive trajectory. Sales of jewellery, watches, clocks and valuable gifts continued to lead growth, surging by 20.1 per cent year on year in June, while sales of electrical goods and other consumer durables saw an 11.3 per cent rise. These were followed by a 9.3 per cent increase in “other consumer goods not elsewhere classified”, a 5.1 per cent rise in furniture and fixtures, and a 2.6 per cent gain in books, newspapers, stationery and gifts. Fuels, on the other hand, plunged by 15.3 per cent, the only category to record a double-digit drop, while Chinese drugs and herbs fell by 4.9 per cent. Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association, said June was traditionally a low season for the retail sector, which explained the smaller increase for that month compared with May’s uptick of 7.9 per cent. She attributed the trend to June typically being an exam month for students in and outside of Hong Kong, adding that this year’s Dragon Boat Festival holiday had created a three-day weekend, encouraging Hongkongers to spend time across the border. The World Cup provided a boost to some sectors, such as the drinks and snacks trade, but its effects were limited, she said. The global football tournament’s limited impact was due to the time difference between Hong Kong and host nations Canada, the US and Mexico. Citing an association survey of about 4,100 retailers and around 80,000 staff, she said sales were expected to remain weak over the summer, largely due to residents travelling overseas and visitors preferring cultural experiences over shopping. She cautioned that weather conditions, such as typhoons and heavy downpours, could potentially pose challenges to retail sales, and said the growth increment for the rest of the year could narrow or decline. Gary Ng Cheuk-yan, a senior economist at Natixis Corporate and Investment Bank, said the mild sales increases among sectors under threat from northbound spending and online shopping showed that the consumption pattern changes had persisted. He noted small rises of 2.5 per cent for food, alcoholic drinks and tobacco, 0.8 per cent for wearing apparel and 0.6 per cent for medicines and cosmetics, among other areas. Ng added that the low increases could also be due to reduced prices resulting from aggressive discount promotions. The Census and Statistics Department previously revealed that Hong Kong’s economy had recorded 5.1 per cent growth for the first half of the year. Private consumption contributed to the strong gross domestic product performance in the first half of the year, alongside government spending and enhanced exports bolstered by the global surge in demand for artificial intelligence-related products. Hong Kong’s finance chief Paul Chan Mo-po earlier said the Census and Statistics Department would raise its annual gross domestic product (GDP) forecast later this month, with experts predicting it could easily hit 4 per cent. The economy is currently projected to grow by 2.5 to 3.5 per cent year on year in 2026. But Chan cautioned that geopolitical developments, US dollar interest rates and other uncertainties could still affect the city’s economic outlook. https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3362917/hong-kong-retail-sales-rise-46-june-growth-streak-extends-14-months?pgtype=live (ICE HONG KONG)

Fonte notizia: South China Morning Post