Hong Kong: Retail sales decelerate but remain strong
October 3, 2011
In August, retail sales rose 20.7% over the same month last year. The print was below both the 22.4% expansion in July and market analysts' expectations, which had retail sales expanding a stronger 23.7%. The reading reflected slower growth in sales across all main categories, with the exception of food sales, which rebounded from last month's drop. In seasonally adjusted terms, retail sales rose 3.5% in the three-month period ending in August compared to the previous period ending in May, which was below the 5.3% increase recorded in July. A government spokesman stated that domestic demand as well as robust tourist spending would continue to buttress consumption. The government expects GDP to expand 5.0%-6.0% this year, owing to strong economic activity.