Hong Kong: Retail sales plummet at slightly softer pace in March
Write intro here Retail sales dropped 43.8% year-on-year in March (February: -46.7% yoy).
Looking at the details of the release, fuel sales contracted again in March, while supermarkets sales increased at a faster pace. Jewelry, watches and valuables sales fell at a softer pace, while clothing and footwear sales also contracted at a softer rate than in February.
On a seasonally adjusted, three-month moving average basis, retail sales by volume in the January–March period plunged 21.6% from the preceding three-month period, which was sharper than the 18.0% decline in December–February. The reading marked the worst result on record.
Looking ahead, the retail sector will likely continue to deteriorate for the major of the year due to depressed consumer confidence and tourist arrivals. Nevertheless, as lockdown measures are ease the contraction in the retail sector will likely follow suit, supported by a favorable base effect due to last year’s protests.