Hong Kong: Retail sales contract at sharpest pace since March in November
Retail sales plunged 5.3% year on year in November (October: +2.5% yoy), confounding market expectations for an increase. The outturn marked the worst reading since March. The reading was driven by sharper drops in fuel, food and clothing sales, and a decline in jewelry sales. Tighter financial conditions, weak asset prices and a shift to consumption of services such as travel likely explained the drop.
Meanwhile, the trend pointed down, with the annual average variation of retail sales coming in at minus 3.1% in November, down from October’s minus 2.3%.