HONG KONG: Hong Kong’s retail sales declined unexpectedly in March, after rising sharply in the previous month, preliminary figures from the Census and Statistics Department showed Tuesday.
The retail sales value fell 2.9 percent year-over-year in March, defying economists’ expectations for a 5.0 percent climb. In February, sales had risen 14.8 percent.
In volume terms, retail sales rose 0.8 percent in March, much slower than previous month’s 18.1 percent hike. Economists had expected a 4.8 percent increase for the month.
On a seasonally adjusted basis, the value of retail sales decreased 1.0 percent in the three months ended March compared with the previous quarter and the volume of retail sales slipped by 0.8 percent.
The value of sales of jewellery, watches and clocks, and valuable gifts plunged 18.6 in March from the previous year, while sales of electrical goods and photographic equipment climbed by 2.8 percent.
“The retail sales performance in the near term is likely to be constrained by the weaker performance of inbound tourism, although the stable labour market conditions should still render support to local consumer sentiment,” a government spokesman said.
“We need to monitor closely if the recent slowdown in retail business, together with the various uncertainties in the external environment, would affect the local economy and job creation down the road.”
