FX.co ★ Hong Kong Retail Sales Drop Eases in March

In March 2025, Hong Kong experienced a 4.8% decline in retail sales compared to the same period last year. This continues a trend of decreasing retail activity for the thirteenth consecutive month, following a notable 15.1% drop in February. The downturn was predominantly influenced by reduced consumer spending across several sectors: consumer goods saw a decline of 17.9% (compared to a 16.6% decrease in February), clothing and footwear fell by 9.7% (improving from a 14.1% drop), jewellery, watches, clocks, and valuable gifts decreased by 6% (better than the 16.6% decline), department stores faced a 5% reduction (a significant improvement from a 22.9% fall), and fuels dropped by 2% (compared to a 12.6% decrease). Other consumer goods also saw a reduction of 2%, slightly better than the previous 12% decline. Conversely, certain sectors experienced growth: supermarket sales increased by 2.8% (a recovery from an 18.9% drop), and sales of food, alcoholic drinks, and tobacco rose by 7.1% (improving from an 11.1% decline). On a monthly basis, retail sales rebounded with a 2.1% increase in March, countering February's sharp 17.3% decline. A government spokesperson highlighted the persisting challenges for the sector, attributing them to the uncertain global economic environment and shifts in consumer behavior.