Hong Kong retail sales rise 4.5% in July, marking 15th straight month of growth

Hong Kong's retail sector continued its streak of growth, with sales increasing by 4.5% year-on-year in July, marking the 15th consecutive month of expansion, according to government figures released on Monday. The retail sector generated HK$31 billion in sales, a decrease from the previous month's HK$31.5 billion. The growth, while steady, was tempered by adverse weather conditions and continued outbound travel by residents.

The first seven months of the year saw retail sales rise by 8.9% compared to the same period in 2025. Despite the slowdown, the National Bureau of Statistics expects ongoing economic expansion, rising household incomes, and stable labor market conditions to bolster consumer sentiment. Mega-events planned for the future are also anticipated to support retail growth by boosting visitor arrivals.

The sectors that saw the largest year-on-year increases were jewellery, watches and clocks, and valuable gifts, up by 19.7%, followed by electrical goods and other consumer durables at 11.5%. However, motor vehicles and parts experienced the steepest decline, falling by 18.2%, while fuels dipped by 18%. Retail sales for the first half of the year grew by 9.6% in value and 7.2% in volume compared to the same period in 2025.

Despite the robust growth in July, the Hong Kong Retail Management Association's chairwoman, Annie Tse Yau On-yee, expressed disappointment, noting that July 2025 was the second-worst month in 2025 due to the low comparison base. Poor weather, with 25 rainy days in July, and the start of the summer holiday season, which led to more Hongkongers traveling abroad, were significant factors hindering sales.

For the upcoming months, the association's survey of around 3,100 shops and 75,000 employees found that August sales also fell short of expectations, with 40% of surveyed members reporting performance worse than expected.