Hong Kong retail sales jump 7 per cent in January to HK$48 billion, defying predictions of doom and gloom from US-China trade war
- Some 5.54 million mainland Chinese visitors poured into the city for the best January on record
- Government, however, says seasonal factors distorted figures, with Lunar New Year starting earlier
Hong Kong’s retail sector enjoyed a stronger-than-expected start to the year, with sales jumping more than 7 per cent in January as a record number of mainland Chinese visitors flooded the city for pre-Lunar New Year shopping.
Contrary to the doom and gloom predicted by many for 2019, retail sales for January jumped the biggest in five months to HK$48.1 billion (US$6.2 billion), up 7.1 per cent year on year, and much improved on the 0.1 per cent growth in December, the government announced on Tuesday.
Some 5.54 million mainland visitors poured into the city for the best January on record – a 34.8 per cent year-on-year increase – taking total arrivals to 6.78 million, a 27.2 per cent rise.
“Retail sales tend to show greater volatility in the first two months of a year due to the timing of Lunar New Year,” a government spokesman said. “In the near term, the outlook for retail sales business is still subject to uncertainty. While full employment in the local labour market and the sustained expansion in inbound tourism should provide support, consumption sentiment will still be affected by the unsteady external environment.”