Retail sales were down 10.1 percent in August compared to the same month last year, according to official figures released on Thursday. It was the sixth consecutive month of year-on-year declines, after an 11.8 percent drop in July and a 9.7 percent decrease in June. Sales of commodities in supermarkets, jewellery, watches, clocks and valuable gifts saw the most dramatic drops. For the first eight months of this year, the value of total sales edged down by 7.7 percent on a year-on-year basis. "The value of total retail sales recorded a year-on-year decline in August amid the continued impact of the change in consumption patterns, the relatively strong Hong Kong dollar, and increased outbound travels by residents during the summer holidays, among other factors," a government spokesperson said in a statement. The executive director of the Hong Kong Retail Management Association, Bond Law, said the outlook for whole-year retail sales is gloomy, despite recent rate cuts and stock market rallies. "As we can see that the start of Hong Kong's rate cuts circle in September and the recent surge in the stock market are favourable for strengthening the consumption atmosphere," he said. "However, there are still many uncertainties regarding the pace of rate cuts and the stock market is also expected to be unstable in the short term. At present, we still maintain our forecast that the overall retail sales for the entire year of 2024 will record a low double-digit decline." Looking ahead, officials said retailers will continue to face headwinds, but economic growth, rising employment earnings and the US interest rate cut should offer support to the sector.
