In May, Hong Kong experienced an impressive 18.4% year-on-year increase in retail sales, driven by a resurgence in inbound tourism and a shift towards more optimistic local consumption sentiment. Government data reveals that sales soared to HK$34.5 billion (US$4.4 billion), marking the sixth consecutive month of growth following a 14.9% rise in April.
According to a government spokesperson, the upward trend in retail sales is expected to continue in the coming months. Factors contributing to this growth include a projected increase in incoming visitors as transportation capacity expands, enhanced labor market conditions, the disbursement of the second installment of consumption vouchers, and the combined promotional efforts of the government and industry.
As anticipated, jewelry and watch sales experienced the most significant surge, soaring by 51.8%. Apparel sales also witnessed a notable rise of 38.5%, while department stores experienced a solid 9.9% increase, and cosmetics saw an impressive boost of 51.5%.
However, some sectors experienced a decline, with supermarket sales decreasing by 0.2%, electrical goods by 5.6%, and furniture and fixtures by 8.6%. Online transactions accounted for 6.3% of May's total retail sales, reflecting a 3.7% year-on-year decline.
