Hong Kong's retail sales by value jumped 19.3 percent in February from a year earlier to HK$35 billion, the 10th month of ⁠gains, with sales by most broad types of retail outlet registering growth, preliminary government data showed on Wednesday.

It was the biggest percentage rise since June 2023, when retail sales jumped 19.5 percent.

In January, retail sales rose 5.5 percent ⁠year-on-year.

Figures released by the Census and Statistics Department also showed that in volume terms, February's retail ⁠sales surged 17.5 percent ⁠from a year earlier, compared with a revised 3.5 percent rise in January.

It ⁠was the biggest percentage gain since March 2023, which saw a 39.3 percent rise.

Commenting on the data, a government spokesperson said that retail sales "strengthened further in early 2026."

"Looking ahead, the resilient growth momentum in the local economy and the vibrant increase in inbound visitors are expected to support retail businesses," the spokesperson said.

"Meanwhile, the government will continue to closely monitor developments in geopolitical tensions and assess its potential implications for the consumer spending in the local market."

The spokesperson also noted it's better to analyse the figures for January and February together, as retail sales typically show greater volatility in the first two months of the year, due to the different timing of the Lunar New Year holiday.

By categories, sales of electrical goods and unclassified consumer durable goods rose the most, increasing by 32.4 percent year on year in the January-February period.

Meanwhile, sales of motor vehicles and parts were up by 28.5 percent, and those of jewellery, watches and clocks, as well as valuable gifts advanced by 27.8 percent.

Sales of fuels, however, dropped the most, down 14.2 percent year on year in the first two months of the year, while those of Chinese drugs and herbs declined slightly by 0.8 percent.

Separately, online sales rose notably and were up by 27.5 percent year on year during the two-month period.

Commenting on the data, Annie Yau Tse, chairwoman of the Hong Kong Retail Management Association, noted the rises came on the back of a low base last year, but the government's mega-events as well as the rising tourism sector helped lift consumption.

But she warned about the outlook ahead, saying the conflict in the Middle East could dampen consumer sentiment, as the war had an impact on the stock market.

"The impact from the oil prices has always been significant, as well as that from the supply chain [disruptions], so all of these might lead to an increase in costs," she said.

"And if retailers are unable to truly absorb these costs, when costs increase, then the costs would be passed on to consumers.

"And when that happens, especially we are also at a very price-sensitive environment today, then it actually has a significant impact on purchasing intentions," she added.

Separately, Yau Tse noted surveys with the association's members also showed many of the city's retailers had already changed their strategies and started sourcing products from the mainland, following the tariff wars last year, which might help cushion the impact from the war.

She also said the Ching Ming and Easter holidays could help lift sales in April - due to the potential increase of tourists in the city. (Additional reporting by Reuters)



Edited by Tony Sabine