Hong Kong retail sales rise 5.6% in August as spending improves

Hong Kong retail sales rose 5.6 per cent year on year in August, suggesting a recovery in consumer spending after growth slowed in the previous two months. The value of sales reached HK$32 billion, or about US$4.1 billion, according to provisional figures released on Friday by the Census and Statistics Department. Sales during the first eight months of the year were 8.5 per cent higher than in the same period of 2025.

A government spokesman said growth was recorded across many types of retail outlets. Online retail sales also increased notably, reflecting an ongoing shift towards digital channels. August’s growth followed a 4.5 per cent rise in July, when monthly sales were HK$31 billion.

Growth had eased from 7.9 per cent in May to 4.6 per cent in June. Electrical goods and other consumer durables recorded the strongest increase in August, rising 29.1 per cent from a year earlier. Sales of jewellery, watches, clocks and valuable gifts increased 11.9 per cent.

Motor vehicles and parts were the weakest category, with sales declining 22 per cent year on year. The Hong Kong Retail Management Association had previously said August sales fell below expectations. Its survey of about 3,100 shops employing 75,000 people found that around 40 per cent of respondents reported weaker-than-expected performance.

Association chairwoman Annie Tse Yau On-yee said visitor numbers in traditional tourist districts remained healthy, but tourists’ spending power was relatively weak. Hong Kong’s economy grew 4.3 per cent year on year in the second quarter, while real private consumption growth slowed to 2.8 per cent.