Hong Kong March retail sales down 7%, snapping 15 months of growth

HONG KONG : Hong Kong’s March retail sales fell 7 per cent from a twelve months earlier, partly due to a high base of comparability for customer spending and the Easter holidays, authorities data showed on Friday.

Sales reduced to HK$31.2 billion ($3.Ninety nine billion), snapping 15 consecutive months of growth. That in contrast with a 1.9 per cent upward push in February.

“The changing consumption patterns of guests and residents may per chance maybe also continue to pose challenges,” a authorities spokesman said.

Hong Kong customer arrivals are rising following the pandemic lockdown, serving to to force 2.7 per cent growth in the local financial system in the first quarter. Though arrivals are rising there are indicators vacationers are spending less.

The authorities’s efforts to advertise a mega match financial system, a further revival in inbound tourism and rising household earnings must composed abet to crimson meat up the retail sector, the spokesman said.

In volume terms, retail sales reduced 8.6 per cent twelve months-on-twelve months in March, in contrast with a 0.5 per cent growth in February.

For the first quarter of 2024, total retail sales reduced by 1.3 per cent in contrast with the same duration in 2023, while the quantity of total retail sales fell 3.1 per cent, in response to provisional estimates.

March customer arrivals stood at 3.4 million, up 38.6 per cent from a twelve months ago duration, data from the Hong Kong Tourism Board showed. That in contrast with 4.0 million in February, 3.83 million in January.

The different of mainland Chinese guests stood at 2.46 million in March, up 24.9 per cent from the same duration in 2023. That in contrast to February’s 3.25 million and January’s 2.98 million.

Sales of jewelry, watches, clocks and purposeful items fell 17.7 per cent in March on twelve months after a 3.6 per cent decline in February.

Sales of clothing, shoes and tools dropped 16.7 per cent in March after an develop of 12.3 per cent in February.

The authorities furthermore said a longer duration of tight financial prerequisites may per chance maybe also dampen financial self belief and actions.

($1 = 7.8160 Hong Kong bucks)