HK May Value of Total Retail Sales Fade 11.5% YoY, Behind Forecast

　　The Census and Statistics Department (C&SD) announced the value of total retail sales in May 2024, provisionally estimated at $30.5 billion, decreased by 11.5% compared with the same month in 2023, while the market had projected a 10.8% decline. The revised estimate of the value of total retail sales in April 2024 decreased by 14.7% compared with a year earlier.

　　Of the total retail sales value in May 2024, online sales accounted for 8.7%. The value of online retail sales in that month, provisionally estimated at $2.6 billion, increased by 21.9% compared with the same month in 2023. The revised estimate of online retail sales in April 2024 increased by 11.5% compared with a year earlier.

　　After netting out the effect of price changes over the same period, the provisional estimate of the volume of total retail sales in May 2024 decreased by 12.9% compared with a year earlier. The revised estimate of the volume of total retail sales in April 2024 decreased by 16.5% compared with a year earlier.

　　A government spokesman said that the value of total retail sales continued to decline notably in May from a year earlier, mainly affected by changes in the consumption patterns of visitors and residents, as well as the strength of the Hong Kong dollar. A relatively high base for comparison in the same period last year was also relevant.

　　Looking ahead, the spokesman added that the retail sector may still face some challenges in the near term. However, the Central Government's recently announced measures benefitting Hong Kong, including the further enhanced Individual Visit Scheme and the increase of duty-free allowance for luggage articles for Mainland resident visitors, should help stimulate retail businesses. The SAR Government's strenuous efforts to promote a mega event economy and boost market sentiment should also provide support. Rising employment earnings and the recent stabilisation of the asset markets also bode well for the sector.

　　The spokesman added that the value of online retail sales increased by over 20% year-on-year in May, and its share in total retail sales value has continued to increase in recent months. This reflects that the retail sector can seize new opportunities by adapting to changing consumption patterns through changing sales mode and venturing into new businesses. The SAR Government will continue to support small and medium-sized enterprises in embracing digital transformation, including assisting the retail sector in adopting ready-to-use digital technology solutions through the Digital Transformation Support Pilot Programme.

　　The spokesman also added that the current overall economic situation of Hong Kong is positive. Overall investment expenditure continued to expand in the first quarter, and the values of merchandise exports posted further double-digit growth in April and May over a year earlier. The SAR Government has made good progress in actively attracting enterprises, capital and talent from around the world to Hong Kong. It will also continue to strengthen traditional sectors and accelerate the development of emerging sectors with potential. This will make Hong Kong's industrial development more enriched and diverse, adding new growth impetus and enhancing the overall competitiveness of the economy.

　　AAStocks Financial News