HONG KONG (Reuters) – Hong Kong’s March retail sales fell 7% from a year earlier, partly due to a high base of comparison for visitor spending and the Easter holidays, government data showed on Friday.
Sales decreased to HK$31.2 billion ($3.99 billion), snapping 15 consecutive months of growth. That compared with a 1.9% rise in February.
“The changing consumption patterns of visitors and residents may continue to pose challenges,” a government spokesman said.
Hong Kong visitor arrivals are increasing following the pandemic lockdown, helping to drive 2.7% growth in the local economy in the first quarter. Although arrivals are increasing there are signs tourists are spending less.
The government’s efforts to promote a mega event economy, a further revival in inbound tourism and rising household income should help to support the retail sector, the spokesman said.
In volume terms, retail sales decreased 8.6% year-on-year in March, compared with a 0.5% growth in February.
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