MNI BRIEF: HK Retail Recovery Loses Momentum In November

Retail sales in Hong Kong decreased 4.2% y/y in November, ending two months of positive growth recorded in September and October, according to the Census and Statistics Department (C&SD) on Wednesday.

November saw declines in the purchase of jewellery (down 8.3%) and valuable gifts (down 19.3%), department store products, which fell 16.4%. Declines were partially offset by increases in electrical goods and vehicle parts of 3.1% and 24.8% respectively.

November's softer data reflected some giveback of strong consumption growth in October, which was revised up 0.1% to 4%, the C&SD said. From January to November, it is estimated retail sales declined 1.1% compared with the same period in 2021.

Hong Kong financial secretary Paul Chan recently said he expects local consumption to rebound significantly in 2023 due to the normalisation of social life following pandemic disruptions.