Hong Kong: Decline in retail sales softens slightly in May
June 30, 2020
Write intro here Retail sales fell 33.9% year-on-year in May (April: -37.5% yoy).
The result was driven by a more moderate drop in clothing and footwear sales, while fuel purchases rose slightly in May—for the first time since January this year.
On a seasonally adjusted, three-month moving average basis, retail sales by volume in the March–May period fell 12.8% from the preceding three-month period, which was softer than the 26.2% decline in February–April.
Going forward, the retail sector will likely continue to deteriorate for the majority of the year due to tepid consumer confidence and low tourist arrivals. That being said, a low base effect due to protests that began in April–May last year should lead to softer declines year-on-year in the volume of retail sales.
Author: Steven Burke, Economist