Hong Kong: Retail sales growth moderates in October
December 1, 2014
In October, retail sales rose 4.3% over the same month last year, which was down from the 6.6% increase tallied in September. The result overshot the 2.0% increase that markets had expected. Strong growth in sales of consumer durable goods was behind the monthly increase, more than offsetting a drop in sales of jewelry and luxury goods.
October’s result marks the third consecutive positive result after six months of declining sales earlier in the year due to the Chinese government’s crackdown on corruption and lavish spending. However, a government spokesman explained that, “the performance of items closely related to local consumption was lacklustre, conceivably reflecting the adverse impacts of the ‘Occupy Movement’ on consumer sentiment. After excluding the boost from the surge in sales of consumer durable goods due to the launch of new smartphone models, retail sales actually slackened to show a year-on-year decline in October.”
Retail sales rose a seasonally-adjusted 9.5% in the three-month period up to October, compared to the previous three-month period ending in July. The reading followed the 5.7% increase recorded in September.
Author: Carl Kelly, Economist