FX.co ★ Hong Kong Retail Sales Return to Fall

Retail sales in Hong Kong experienced a decline of 0.3% year-on-year in June 2025, marking a shift from a 1.9% increase observed in the preceding month. This downturn was evident in reduced sales across several categories: food, alcoholic beverages, and tobacco saw a decrease of 3.0% compared to a previous growth of 1.9% in May; supermarket sales dropped by 2.2%, down from no change the month prior; and clothing, footwear, and related products fell by 1.4%, following a 4.8% rise. Furthermore, sales for fuels contracted further by 6.3%, worsening from a 3.0% decline, while consumer durable goods plummeted by 9.4% after a modest decrease of 0.6%. The rate of growth in department store sales slowed slightly to 6.9% from 7.1%, and for other consumer goods, growth moderated to 3.1% compared with 5.7% previously. In contrast, sales for jewelry, watches, clocks, and luxury gifts showed a positive turnaround, rising by 3.8% after a significant fall of 7.3%. On a month-to-month basis, retail trade contracted by 4.5%, negating the substantial 9.2% increase recorded in May 2025.