Hong Kong retail sales rise 4.5% in July, marking 15th straight month of growth Hong Kong’s retail sector recorded growth for a 15th consecutive month in July, with the government reporting a 4.5 per cent increase year on year, although the pace of expansion slowed amid adverse weather and continued outbound travel by residents. Retail sales value for the month reached HK$31 billion (US$4 billion), while sales in the first seven months of the year grew by 8.9 per cent compared with the same period in 2025, according to provisional figures released by the Census and Statistics Department on Monday. A government spokesman said retail sales growth momentum remained resilient in July, with growth broadly steady from the previous month. “Looking ahead, continued economic expansion, rising household incomes, and stable labour market conditions should bolster consumer sentiment,” he said. “A series of coming mega-events is also expected to sustain growth in visitor arrivals, providing further support to retail businesses.” Sales of jewellery, watches and clocks, and valuable gifts recorded the strongest increase in July, rising by 19.7 per cent year on year, followed by electrical goods and other consumer durables at 11.5 per cent. Other consumer goods not elsewhere classified also grew 10.5 per cent. Motor vehicles and parts recorded the steepest decline, falling by 18.2 per cent, closely followed by fuels at 18 per cent, while sales of Chinese drugs and herbs dropped by 13.7 per cent. The latest figures followed a 4.6 per cent increase in retail sales in June, when the value reached HK$31.5 billion. For the first half of the year, retail sales rose by 9.6 per cent in value and 7.2 per cent in volume compared with the same period in 2025. Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association, said the latest figure was weak given the low comparison base, noting that July 2025 had been the second-worst month last year. “Under such a low base, a 4.5 per cent increase is not very satisfactory, although at least we are still seeing positive growth,” she said. Tse said the HK$31 billion sales value was also the lowest monthly figure so far this year, with poor weather a major drag. The city had 25 rainy days during the month, while the start of the summer holiday season also prompted more Hongkongers to travel overseas. Looking ahead, the association’s latest survey, covering about 3,100 shops and 75,000 employees, found that August sales also fell short of expectations. About 40 per cent of surveyed members said performance was worse than expected, while more than 30 per cent said it was in line with forecasts. Tse said foot traffic in traditional tourist districts such as Tsim Sha Tsui, Mong Kok and Causeway Bay remained healthy, but visitor spending power was still relatively weak. Hong Kong’s economy grew by 4.3 per cent year on year in the second quarter, bringing the increase for the first half of 2026 to 5.1 per cent. Private consumption expenditure rose by 2.8 per cent in real terms in the second quarter compared with a year earlier, slowing from a 4.9 per cent increase in the preceding three months. This month, the government raised its full-year economic growth forecast to between 3.5 and 4.5 per cent, from its previous range of 2.5 to 3.5 per cent. But it warned that geopolitical tensions, uncertainties over US trade and monetary policies, and fluctuations in global financial markets could cloud the outlook. Hong Kong welcomed 4.5 million visitors in July, a 3 per cent increase from a year earlier. Mainland arrivals also rose by 3 per cent to 3.61 million, while long-haul arrivals jumped by 17 per cent to about 307,000. The July figure brought total arrivals for the first seven months of the year to 31.22 million, an 11 per cent year-on-year increase. Mainland visitors accounted for 24.16 million arrivals, up 13 per cent, while non-mainland arrivals grew by 5 per cent to 7.05 million. https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3365836/hong-kong-retail-sales-rise-45-july-marking-15th-straight-month-growth?module=top_story&pgtype=section (ICE HONG KONG)

Fonte notizia: South China Morning Post