Hong Kong retail sales rise for 9th month as stimulus lends support

[HONG KONG] Hong Kong's retail sales climbed for the ninth straight month in October, helped by stronger demand as the economy recovers and from the government's digital voucher scheme to boost spending.

Retail sales in October rose 12 per cent from a year earlier to US$3.94 billion, government data showed on Tuesday. That compares with a revised 7.4 per cent increase in September.

"As long as the local epidemic situation remains under control, the improving employment and income conditions alongside the Consumption Voucher Scheme should continue to support the retail sector in the near term," a government spokesman said.

In volume terms, retail sales in October grew 9.4 per cent from a year earlier, compared with a revised 4.9 per cent surge the previous month.

For the first 10 months of 2021, total retail sales increased 8.5 per cent in value terms and rose 7.1 per cent in volume terms.

Online retail sales in October jumped 29.4 per cent in value year-on-year compared with a revised 30.7 per cent growth in September.

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Sales of jewellery, watches, clocks and valuable gifts, which relied heavily on mainland Chinese tourists before the pandemic, surged 23.1 per cent in October.

Clothing, footwear and related products rose 10.9 per cent in October while sales of electrical goods and some consumer durable goods jumped 52.1 per cent.

Tourist arrivals in October jumped 19.6 per cent from a year earlier to 9,353 compared with September's 8.2 per cent increase. But total visitor arrivals from January to October, were down 98 per cent from a year earlier to 72,458.

The city's economy grew 5.4 per cent in the third quarter from a year earlier, recovering from the pandemic-induced slump, but longer-term prospects are hanging on the impact of the government's zero-Covid policy.

Hong Kong's seasonally adjusted unemployment rate slipped to 4.3 per cent in the August-October quarter compared with 4.5 per cent in July-September period.

REUTERS