April HK retail sales up 18.7%
Updated: 2008-06-03 07:39
By Karen Cho(HK Edition)
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The United States' economic lull didn't curb the spending habits of Hong Kong consumers in April, as year-on-year sales grew by almost 19 percent to HK$22.8 billion, with luxury items leading the surge.
The Hong Kong Census and Statistics Department released the figures yesterday indicating the 18.7 percent April rise.
Despite continued threats of a US recession and the local stock market's volatility, Hong Kong spenders continued to purchase expensive high-tech items and automobiles.
Sales of electronics and photography items posted the biggest rise - 25.1 percent, year-on-year.
Apparel sales were up 18.8 percent and vehicle sales rose 18.6 percent.
Retailers selling luxury items such as jewelry and watches also had a lucrative month, with those April sales increasing 14.1 percent.
The rosy performance at the cash register is a reflection of Hong Kong consumers' continued confidence in the territory's economic growth, Bank of East Asia Chief Economist Paul Tang said.
However, he noted that the strong consumption power does not extend to all economic classes.
"Residents with low-income actually find themselves cutting back on food spending due to rising inflation," Tang said. "While high-income individuals who benefit from the strong financial markets increase their spending through traveling or dining out."
Affected by shortages of pork on the mainland, the price of the staple meat in Hong Kong surged almost 60 percent in April.
Beef prices rose 51 percent according to the April CPI index.
The government said that the robust labor market and rising income will likely provide strong support for healthy consumption in the territory.
But the US economic slowdown and the "ongoing financial market turbulence" have been listed as potential down-side risks.
Looking ahead, Tang said the rapid increase in the consumption rate should be sustainable in the first half of this year.
"However, in the latter half, how much consumption changes will depend on the US economy, and how much impact it has on the local export sector," he said.
(HK Edition 06/03/2008 page2)