Hong Kong: Retail sales rebound in February, but remain downbeat
Retail sales grew 0.5% year on year in February (January: -1.2% yoy). Looking at the details of the release, fuel sales shrank at a faster rate in February, while supermarkets sales gained momentum. Meanwhile, food and alcoholic beverages sales also expanded at a stronger pace. Lastly, jewelry, watches and valuables sales and clothing and footwear sales gained steam.
Looking at the first two months together to remove distortions arising from the differences in the timing of the Lunar New Year, retail sales fell slightly in annual terms, pointing to a downbeat picture for private consumption at the outset of the year. Hong Kong retail sales are still languishing over 10% below their pre-Covid-19 levels, weighed on by the still-incomplete recovery in tourist arrivals and the increasing number of Hong Kongers opting to shop on the mainland.