Hong Kong retail sales fell 7% in March, slowing 15-month growth | 104.1 WIKY

HONG KONG (Reuters) – Hong Kong retail sales fell 7% in March from a year earlier, partly due to a high benchmark for visitor spending and the Easter holiday, government data showed on Friday.

Sales fell to HK$31.2 billion ($3.99 billion), breaking 15 consecutive months of growth. That compared to a 1.9% increase in February.

“The changing consumption patterns of visitors and residents may continue to pose challenges,” a government spokesperson said.

Visitor numbers in Hong Kong are increasing after the pandemic lockdown, which contributed to the 2.7% growth in the local economy in the first quarter. Although arrivals are increasing, there are signs that tourists are spending less.

The government’s efforts to promote a mega events economy, a further revival of inbound tourism and rising household incomes should help support the retail sector, the spokesperson said.

In volume terms, retail sales fell 8.6% year-on-year in March, compared with 0.5% growth in February.

For the first quarter of 2024, total retail sales fell 1.3% compared to the same period in 2023, while the volume of total retail sales fell 3.1%, according to preliminary estimates.

The number of visitors in March reached 3.4 million, up 38.6% from a year ago, data from the Hong Kong Tourism Board showed. That compared to 4.0 million in February and 3.83 million in January.

The number of Chinese visitors to the mainland reached 2.46 million in March, up 24.9% from the same period in 2023. That compares with 3.25 million in February and 2.98 million in January.

Sales of jewelry, watches, clocks and valuable gifts fell 17.7% year-on-year in March, following a 3.6% decline in February.

Sales of clothing, shoes and accessories fell 16.7% in March, after a 12.3% increase in February.

The government also said an extended period of tight financial conditions could dampen economic confidence and activity.

($1 = 7.8160 Hong Kong dollars)

(Reporting by Donny Kwok; Editing by Timothy Heritage and Sharon Singleton)