Hong Kong's retail sales increased for the first time in more than two years in March, defying economists' forecast for a further decline, preliminary figures from the Census and Statistics Department showed Friday.
The value of retail sales climbed 3.1 percent year-over-year in March, reversing a 5.8 percent decline in February.
Moreover, this was the first rise since March 2015. At the same time, economists had expected a 0.9 percent drop for the month.
Similarly, retail sales volume grew 2.7 percent annually in March, in contrast to a 6.2 percent fall in the preceding month. It was also the first increase in twenty-five months.
The value of sales of jewellery, watches and clocks, and valuable gifts rose 8.4 percent in March from a year ago and those of wearing apparel registered an increase of 2.5 percent. On the other hand, the value of sales of electrical goods and photographic equipment decreased by 17.9 percent.
"Retail sales resumed moderate year-on-year growth in March, after an extended period of decline. This reflected partly the continued recovery of visitor arrivals and partly the robust local consumption demand that was underpinned by the favorable job and income conditions," a government spokesman said.
"Looking ahead, the near-term outlook for retail sales will continue to depend on the recovery pace of inbound tourism as well as how various external uncertainties would unfold and shape local economic sentiment down the road. The Government will continue to monitor the situation closely."
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