Hong Kong: Retail sales rise at quickest pace in six months in April
Retail sales expanded 8.1% year-on-year in volume terms in April (March: -16.8% yoy). The reading reflected double-digit growth in spending on durable goods such as furniture and electronics, while sales of jewelry also rose strongly. In contrast, spending on food and drink declined somewhat.
The rise in retail sales was thanks to the distribution of HKD 5,000 consumption vouchers to citizens in early April, as well as the easing of social distancing measures. These same factors should continue to buoy private spending in the remainder of Q2, while the likely disbursement of a second HKD 5,000 consumption voucher in July should further spur consumption in Q3.