Consumer spending picks up in Hong Kong, with retail sales rising 5.6% in August

Hong Kong’s retail sales rose by 5.6 per cent year on year in August, with the latest figures showing consumer spending picking up after growth eased for two consecutive months.

The retail sales value reached HK$32 billion (US$4.1 billion), according to provisional figures released by the Census and Statistics Department on Friday. Sales in the first eight months of the year rose by 8.5 per cent compared with the same period in 2025.

“Growth was seen across many types of retail outlets, while online retail sales value grew notably, reflecting a continued shift in consumer spending towards digital channels,” a government spokesman said.

The latest figures followed a 4.5 per cent increase in July, when sales reached HK$31 billion, the lowest monthly value recorded in the first seven months of the year. Growth had slowed from 7.9 per cent in May to 4.6 per cent in June.

Sales of electrical goods and other consumer durables recorded the strongest increase in August, rising by 29.1 per cent year on year, followed by jewellery, watches and clocks, and valuable gifts, at 11.9 per cent.

Motor vehicles and parts recorded the steepest decline, falling by 22 per cent.

The Hong Kong Retail Management Association had previously warned that August sales fell short of expectations. Its survey, which covered about 3,100 shops and 75,000 employees, found that about 40 per cent of respondents reported weaker-than-expected performance.

Association chairwoman Annie Tse Yau On-yee said last month that foot traffic in traditional tourist districts remained healthy, but visitors’ spending power was still relatively weak.

Hong Kong’s economy grew by 4.3 per cent year on year in the second quarter, while private consumption expenditure rose by 2.8 per cent in real terms, down from 4.9 per cent in the preceding quarter.