Hong Kong's retail sales recorded their fastest growth in almost two years in October, rising 6.9 percent year on year and beating market expectations.

Official provisional figures released by the Census and Statistics Department showed that the value of the total sales during the period was estimated at HK$35.2 billion.

That compared to the revised HK$31.3 billion recorded a month earlier, when the value of total retail sales grew by six percent year on year.

The latest growth rate in October was the largest since December 2023.

In terms of retail sales volumes, the gauge rose 5.3 percent year on year, faster than the 4.8 percent annual increase a month before.

Sales of electrical electrical goods and other consumer durable goods not elsewhere classified soared the most, rising by 24.6 percent year on year.

Products including jewellery, watches, clocks, as well as other valuable gifts, saw sales rise by 9.5 percent year on year.

Sales of food, alcoholic drinks and tobacco rose by six percent, while commodities sold at department stores jumped 5.8 percent.

Optical shops also saw good businesses during the period, with sales rising by 4.4 percent.

Sales of motor vehicles and parts, however, dropped the most, retreating about 20 percent year on year, while fuel also took a hit, declining 8.7 percent.

Sales of Chinese drugs and herbs dropped 6.6 percent, and furniture and fixture sales were down by 2.3 percent.

Commenting on the data, a government's spokesperson said the recovery in retail sales "gathered strength" in October, with sales of most broad outlet types continuing to grow.

"Looking ahead, ongoing improvement in local consumer sentiment and sustained notable growth in visitor arrivals should continue to render support to retail businesses," the spokesperson said.

Taking the first 10 months of the year in total, the value of retail sales remained at a similar level, compared with the same period a year ago, although the total volume dropped by 1.5 percent.

Online sales rose 9.5 percent year on year during the 10-month period.