HONG KONG'S retail sales continued to fall in April with retailers describing the outlook as 'grim'.
The volume of April's sales was down eight per cent compared with last month and 2.5 per cent year-on-year.
Car sales took the biggest knock, with volumes falling nearly 36 per cent compared with the same month last year. The chairman of the Retail Management Association, Rodney Miles, said: 'The result is as expected - grim. There is nothing out there to generate any confidence or improve sentiment.' According to government figures, the value of sales rose by five per cent from a year earlier to a provisional $15.9 billion.
Economists said consumer confidence had been hit by recent interest rate rises, a volatile stock market and weak demand for residential property.
Consumer confidence has also been dented by the rising cost of imports from major trading countries - such as Japan and Germany - due to the fall in the dollar's value.
Senior economist for the Hang Seng Bank, Stanley Ng, said: 'People are still very cautious, mainly as a result of the pessimism caused by rising unemployment. More and more people are putting off buying and are saving for rainy days.' Falls were across major categories - over one month, four months and a year.