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Jan 2, 2010
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Hong Kong retail sales rise in November

By
AFP
Published
Jan 2, 2010

HONG KONG, Dec 29, 2009 (AFP) - Hong Kong's retail sales soared 11.7 percent in November from a year earlier, the government said Tuesday 29 December, boosted by a sharp increase in consumer spending on big-ticket goods.



The value of retail sales in November rose for the third consecutive month to 22.9 billion Hong Kong dollars (2.95 billion US dollars), the Census and Statistics Department said.

The year-on-year rise was larger than October's 9.8 percent increase, and beat the median 7.9 percent jump forecast by seven economists surveyed earlier by Dow Jones Newswires.

Sales of motor vehicles and auto parts increased the most, by 52.1 percent, while supermarket commodities dropped 3.9 percent from a year earlier.

Electrical goods, jewellery and watches, and valuable gifts also jumped between 10 to 20 percent over the same period.

A government spokesman said the marked improvement in retail sales reflected a strengthening of consumer sentiment, evidenced by demand for high-priced items such as motor vehicles and durable goods.

"On a seasonally adjusted basis, the level of retail sales in recent months had already surpassed those before the outbreak of the financial tsunami," he said in a statement.

"With the economy improving, consumer confidence should continue to hold firm going forward, rendering support to the retail business."

However, the optimistic note was in contrast with a warning from Chief Executive Donald Tsang who said Tuesday 29 December that Hong Kong's economy may experience a "double dip in the middle of next year".

Tsang said from Beijing he was prepared for the possibility that the city's economic recovery "would not proceed smoothly", according to Dow Jones.

"I am a bit pessimistic about the pace of recovery and we may experience a double dip in the middle of next year," he said.

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