Hong Kong: Retail sales remains buoyant in July
August 29, 2011
In July, retail sales rose 22.4% over the same month last year. The print was virtually unchanged from the 22.2% expansion in June but exceeded market analysts' expectations, which had retail sales expanding a softer 19.7%. The expansion was driven by resilient growth in sales of consumer durable goods as well as jewellery, watches and valuable gifts, while sales of food dropped. In seasonally adjusted terms, retail sales rose 5.3% in the three-month period ending in July compared to the previous period ending in April, which was slightly below the 5.6% increase recorded in June. Despite this moderation, the reading confirmed the resilience of consumer demand. A government spokesman stated that domestic demand as well as robust tourist spending will continue to buttress consumption. The government expects GDP to expand 5.0%-6.0% this year, owing to strong economic activity.