FX.co ★ Hong Kong Retail Sales Rebound in May After 14-Month Decline

Retail sales in Hong Kong experienced a 1.9% year-on-year increase in May 2025, marking a recovery from the 3.3% decline seen in April and concluding a 14-month period of decline. Key factors behind this turnaround included robust growth in the clothing, footwear, and related products sector, which posted a 4.8% rise compared to a previous drop of 2.8%, and department stores, which saw a 7.1% increase from a previous 1.9% uptick. Additionally, there was a noticeable moderation in the rate of sales decline for fuel, improving to -3.1% from -9.9%, and consumer goods, which marginally improved to -0.5% from a steep -21.6% drop. Supermarket sales stabilized, maintaining a flat growth rate compared to a previous 4% decrease. In contrast, there was a slowdown in the growth of food, alcoholic beverages, and tobacco, now at 1.9% from 2.5%, and other consumer goods, declining to 5.6% from 7.3%. Further setbacks were noted in the jewellery, watches, clocks, and valuable gifts sectors, with sales falling by 7.3% compared to an earlier decline of 5.8%. Looking forward, a spokesperson highlighted that as the retail sector acclimatizes to evolving consumption trends, government initiatives to promote tourism and major events, coupled with rising employment revenue and consistent economic growth in Mainland China, are expected to bolster consumer confidence and sustain the consumption market.