Hong Kong: Growth in retail sales in November accelerates to 10-month high
December 30, 2014
In November, retail sales rose 7.5% over the same month of the previous year, which was well above the 4.3% increase tallied in October. The result overshot the 2.0% increase that markets had expected and represented the fastest pace of growth since January 2014. Strong growth in sales of food, alcoholic drinks and tobacco as well as of jewelry and luxury goods was behind the monthly acceleration.
November’s result marks the fourth consecutive positive result after six months of declining sales earlier in 2014 due to the Chinese government’s crackdown on corruption and lavish spending. A government spokesman explained that, “consumer sentiment appeared to have turned more stable, and the notable growth in inbound tourism in that month also provided support.” That said, the official noted that, “the near-term performance of retail sales will continue to depend mainly on the job and income conditions as well as the expansion pace of inbound tourism.”
Retail sales rose a seasonally-adjusted 10.6% in the three-month period up to November, compared to the previous three-month period ending in August. The reading followed the 9.5% increase recorded in October.
Author: Carl Kelly, Economist