Hong Kong's retail sales rise 4.5 per cent in July, extending 15-month growth streak

Hong Kong's retail sector posted a 4.5 per cent year-on-year increase in July, extending a growth streak to 15 consecutive months despite headwinds from poor weather conditions and residents continuing to travel abroad for shopping.

The Census and Statistics Department's provisional figures on Monday showed retail sales reached HK$31 billion (US$4 billion) for the month, while the cumulative January-to-July period registered 8.9 per cent growth compared with the same stretch in 2025.

Growth momentum holds steady

A government spokesman described retail sales growth momentum in July as "resilient", noting the pace remained broadly stable from the previous month.

The official attributed the sustained performance to Hong Kong's economic expansion, rising household incomes and stable labour market conditions, factors expected to continue bolstering consumer sentiment. He also pointed to a series of upcoming mega-events that are anticipated to maintain growth in visitor arrivals and provide additional support to retail businesses.

Luxury goods lead sectoral gains

Sales of jewellery, watches, clocks and valuable gifts recorded the strongest year-on-year advance in July, surging 19.7 per cent. Electrical goods and other consumer durables followed with an 11.5 per cent rise, while a miscellaneous category of other consumer goods not elsewhere classified grew 10.5 per cent.

The performance contrasts sharply with categories that posted steep declines: motor vehicles and parts fell 18.2 per cent, fuels dropped 18 per cent, and sales of Chinese drugs and herbs declined 13.7 per cent.

The persistent growth streak underscores the retail sector's recovery from pandemic-era disruptions, though the moderation in July's pace signals that external factors, including residents' preference for overseas shopping trips, continue to temper the expansion.

Source: South China Morning Post