- Retail sales increase for the first time since February 2024
- May tourist arrivals up 20% y/y vs April 13.5% rise
- May jewellery, watch sales down 3.2% vs April's 1.7% fall
HONG KONG, July 2 (Reuters) - Hong Kong's retail sales by value rose 2.4% in May from a year earlier, the first increase in more than a year, government data showed on Wednesday.
Sales increased to HK$31.3 billion ($3.99 billion), the first expansion since February 2024. In April, retail sales fell 2.3% compared with the same month a year before.
In volume terms, May retail sales increased 1.9% from a year earlier, compared with a revised 3.3% decline in April.
May visitor arrivals rose to 4.08 million, up 20% from the same month a year ago, data from the Hong Kong Tourism Board showed. That compared with 3.85 million in April, 3.82 million in March and 3.67 million in February.
The number of mainland Chinese visitors stood at 3.12 million in May, up 19% from a year ago. That compares with 2.81 million in April, 2.75 million in March and 2.77 million in February.
However, many visitors from mainland China are visiting only for a day and keeping a tight rein on spending. At the same time, local residents are spending more across the border, taking advantage of the Hong Kong dollar's relative strength against the Chinese yuan.
"While the retail sector continues to adapt to the changes in consumption patterns, the Government's proactive efforts in promoting tourism and mega events, in tandem with the increase in employment earnings and sustained steady growth of the mainland economy, will help bolster consumption sentiment and support the consumption market," a spokesman for Hong Kong's government said.
Sales of jewellery, watches, clocks and valuable gifts fell 3.2% year-on-year in May after a 1.7% drop in April.
Sales of clothing, footwear and allied products climbed 0.3% year-on-year in May after a 5.5% decline in April.
($1 = 7.8499 Hong Kong dollars)
Reporting by Jessie Pang; Editing by James Pomfret and Kate Mayberry
Source: Reuters