Hong Kong: Retail sales strengthen to eight-month high in September
November 5, 2014
In September, retail sales rose 6.6% over the same month last year, which was well above the 2.8% increase tallied in August. September’s print was the highest since January and overshot the 2.0% decline that markets had expected. Strong growth in sales of consumer durable goods, particularly of the new iPhone 6, as well clothing and footwear were behind the monthly increase.
September’s result marks the second 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, “despite the recent improvement in retail sales, the latest figures of retail sales have yet to reflect the disruptions to the local consumption market caused by the ‘Occupy Movement.’ The downside risks associated with the changing pattern in tourist spending also linger on.”
Retail sales rose a seasonally-adjusted 5.8% in the three-month period up to September, compared to the previous three-month period ending in June. The reading was much higher than the 0.7% increase recorded in August.
Author: Carl Kelly, Economist