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.

Commenting on the latest figures, Annie Yau Tse, chairwoman of the Hong Kong Retail Management Association, said the increase in sales value in August indicated that overall sales were "stabilising". But she also said that the higher figures were partly due to a low base from the same period last year.

"During summer, tourist spending has increased in key locations, driven by concerts and sports events, as well as our shopping festival," the association's executive director, Bond Law, said.

"But the retail sector in August was still subject to some negative factors, such as outbound travels by local families due to summer school holidays, as well as the still-popular northbound travel by locals."

Law added that the ongoing National Day Golden Week holiday will boost the trade further, with more than 80 percent of the association's members expecting stable or improved sales.

"Jewellery retailers, for example, anticipate such growth supported by the upcoming wedding season and increased tourist arrivals.

"Similarly, cosmetics, also part of the tourist-driven market, are also expected to see single-digit growth during Golden Week.

"In addition, the recent upturn in the stock market and the timing of the Mid-Autumn Festival on October 6 – falling within the Golden Week period – are expected to boost the foot traffic and gift-giving."
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Last updated: 2025-10-02 HKT 19:47