Hong Kong Retail Sales Back on the Upswing

Hong Kong’s hard-luxury sales rebounded in September amid an improved job market and a new stimulus payment.

Sales of jewelry, watches, clocks and valuable gifts rose 8% year on year to HKD 3.44 billion ($437.6 million) for the month, the municipality’s Census and Statistics Department reported Tuesday. While July’s sales saw a 30% boost, the growth slowed in August, rising only 4%. September’s increase reflects the second round of HKD 5,000 ($637) consumption vouchers, distributed at the end of August.

Sales in all retail categories were up 0.2% to HKD 28.07 billion ($3.58 billion).

In the first nine months of the year, sales of jewelry, watches, clocks and other valuable gifts rose 0.2% to HKD 28.31 billion ($3.61 billion). Proceeds from all retail segments slipped 1.3% to HKD 254.77 billion ($32.46 billion).

Though retail sales have bounced back during the month, the government worries the recovery is only temporary, it noted.

“The generally stable local epidemic situation, improved labor-market conditions and the consumption-voucher scheme will continue to support consumption demand in the near term,” a government spokesperson said. “However, tightened financial conditions will increasingly offset the positive effects.”

Image: Mong Kok shopping district in Kowloon, Hong Kong. (pxfuel)