Hong Kong is attributing lacklustre retail sales in August to a shift in consumption patterns among locals alongside a stronger Hong Kong dollar and increased outbound travels, among other factors. 

Jewellery sales were one of the heavily affected sectors, recording a high double-digit decline of 24 per cent in August. January to August figures showed a 15.8 per cent dip.

Overall, retail sales were down 10.1 per cent in August and 7.7 per cent in the first eight months of 2024, government data further showed.

The government said the retail sector could continue to face challenges in the near term, but expressed hope that government measures to bolster the local retail sentiment will eventually bear fruit.

Continued economic growth, rising employment earnings and an easing of the Hong Kong dollar alongside US interest rate cuts could also provide support to the retail sector, noted the government.