Hong Kong retail sales took another turn for the worst in June, marking the fourth consecutive monthly decline in the Asian financial hub.
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Retail sales in Hong Kong dropped 9.7 percent to HKD 29.9 billion in June, after an 11.4 percent dive in May and a 14.7 percent contraction in April, according to the Census and Statistics Department.
The figures mark the fourth consecutive monthly contraction following 15 months of uninterrupted growth after Covid-19.
By channel, online sales in June increased 5.2 percent to HKD 2.3 billion accounting for 7.8 percent of the total retail figure.
By category, the value of sales of motor vehicles and parts declined 25.1 percent, followed by jewellery, watches and clocks, valuable gifts down 23.1 percent, and commodities in department stores, down 18.6 percent.
Sales of clothing, footwear and accessories dropped 9.1 percent.
For the first half of 2024, retail sales value fell 6.6 percent year-on-year.
June visitor arrivals to Hong Kong grew 14 percent to 3.132 million on last year, data from the Hong Kong Tourism Board showed, but fell after 3.398 million visitors in May.
While sales fell in June, the rate of decline did narrow during the month, a sign that retail activities were stabilising, according to a government spokesperson, adding the retail sector would still face challenges in the near term.
“Nonetheless, the central government’s various measures benefiting Hong Kong, as well as the government’s strenuous efforts to promote a mega-event economy and support the development of the local retail sector, should benefit the sector,” said the spokesperson.
“In addition, continued growth of the economy and rising employment earnings should also provide support to the retail sector.”
Hong Kong’s chief executive John Lee Ka-chiu announced earlier this year that the city is set to host an impressive lineup of over 100 mega events in the latter half of the year, bringing the total number of ‘mega events’ to over 210 events by the end of 2024 to capitalise on the events economy.
The events are expected to bring in an estimated 1.7 million visitors from around the world, an influx that the government expects will add up to HKD 4.3 billion to the economy.