Business

Tuesday November 3, 2009

HK retail sales rise in September


HONG KONG: September retail sales in Hong Kong rose for the first time since January, by 2.4% from a year earlier, government data showed yesterday. It is a further sign that the economy, which pulled out of recession in the second quarter, is on a firm recovery footing.

Consumer confidence has been boosted as job losses have slowed in recent months and the unemployment rate fell in July–September, to 5.3%, for the first time in nearly two years. A sharp rise in Hong Kong stock and property prices this year had also created a wealth effect, analysts said.

In the three months through September, the volume of sales rose by 4.5%, seasonally adjusted, from the preceding three months.

DBS Bank senior investment strategist Daniel Chan said: “Looking ahead, retail sales should continue to grow. Unemployment has eased and some big companies, such as in finance, are recruiting.

“The revival in consumption will not be very strong, however. Sales in September of motor vehicles, big-ticket items, fell (by 7.8%). Sales of furniture and fixtures also fell (by 1.3%), despite the big jump in property prices. This suggests there is speculation in the property market and people buying are not real users.” — Reuters


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