Hong Kong's retail sales rebounded in May, ending a 14-month losing streak by rising 2.4 percent year on year, with the industry expecting the sector's performance to stabilise in the coming months.

Figures released by the Census and Statistics Department on Wednesday showed that the value of total retail sales was estimated to be at HK$31.3 billion for the month, beating market expectations.

The latest figures marked the first annual increase since February last year, and it is also the biggest monthly growth recorded since December 2023.

A government spokesperson said that the industry's performance improved last month.

"While the retail sector continues to adapt to the changes in consumption patterns, the government's proactive efforts in promoting tourism and mega events, in tandem with the increase in employment earnings and sustained steady growth of the mainland economy, will help bolster consumption sentiment and support the consumption market," the spokesperson said.

Speaking at a press briefing, Annie Yau Tse, chairwoman of Hong Kong Retail Management Association, said the better-than-expected figures were due in part to a low base last year, but noted that the industry is expected to stabilise in the coming months.

"Because of that low-base situation, now we are seeing either flat or positive [industry] performance; But at the same time, it's a very positive sign because at least it shows that our retail sales have stabilised," Yau Tse said.

"I think for the rest of the year, we will see either flat or slightly positive performance," she said.

Sales of consumer goods that are not classified rose 8.9 percent year on year during the month, while that of medicine and cosmetics increased by 8.7 percent. Sales of department store commodities was also up by 6.3 percent.

But sales of furniture and fixtures continued to come under pressure, plunging 12 percent year on year during the month, while that of fuels dropped by 6.9 percent.

Netting out the effect of price changes over the same period, total retail sales in May rose 1.9 percent year on year, compared with the 3.3 percent decline seen in April.

Total retail sales dropped by 5.5 percent in the first five months of the year.