Retail sales grew at their fastest pace in 20 months in August, jumping 3.8 percent year on year.

The Census and Statistics Department estimated the value of total retail sales at HK$30.3 billion.

That was higher than the revised HK$29.67 billion of sales registered in July, when total sales increased by 1.8 percent from the same month in 2024.

The latest pace of growth was the fastest since December 2023.

The value of sales of jewellery, watches, clocks and valuable gifts increased by 16.4 percent in August, but there were falls in some areas including food, alcoholic drinks and furniture.

"Looking ahead, the stabilising local consumer sentiment, coupled with sustained growth in inbound visitors and the government's proactive efforts in promoting tourism and mega events, should render support to retail businesses," a government spokesperson said.

After netting out the effect of price changes, the volume of total retail sales in August rose by 3.2 percent year on year, compared to a 0.9 percent annual increase in July, officials said.

However, for the first eight months of the year, total retail sales were down 1.9 percent in terms of value and 3.1 percent in terms of volume.