Hong Kong retail sales drop 18.3 per cent in September as ongoing protests and trade war continue to batter consumer sentiment

Consumer spending dropped to HK$29.9 billion (US$3.83 billion) for the month after a record 22.9 per cent fall in August, according to the Census and Statistics Department on Friday.

Annie Tse Yau On-yee, chairwoman of the 9,000-member Hong Kong Retail Management Association, warned of a wave of shutdowns and lay-offs at retailers in the fourth quarter of this year – her biggest worry – as she expected the steep decline would linger.

Local consumption, already weakened by the trade war between the United States and mainland China, took a battering amid the anti-government protests and with tourism in the doldrums.

Since protests erupted against the now-shelved extradition bill in June, demonstrations have taken place every weekend and spilled over into shopping malls. As radical protesters vandalised MTR train stations, rail services were reduced.