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  • Hong Kong Retail Sales Rise In June, Slower Pace Indicates Stabilization

    Hong Kong Retail Sales Rise In June, Slower Pace Indicates Stabilization

    In June, Hong Kong experienced an increase in retail sales, albeit at a slower pace than the previous month of May. The total retail sales for the special administrative region came in at HK$30.1 billion (US$3.8 billion), marking a 0.7 per cent year-on-year growth. This rise, however, was less than the 2.4 per cent increase witnessed in May, which was the first surge in retail sales observed in over a year.

    The Impact of Price Changes

    When considering the impact of price changes during this period, the provisional estimate of retail sales for June revealed a 0.3 per cent year-on-year decrease. This is in comparison to a 1.9 per cent uptick seen in May.

    Industry-Specific Performance

    Breaking down the increase in retail sales by industry, the sectors of jewellery, watches and clocks, and valuable gifts led the pack, enjoying a 6.8 per cent upswing in June. The following industries also saw notable growth: medicines and cosmetics, with a 6 per cent increase; commodities in department stores, with a 5.7 per cent rise; and optical shops, which saw a 1 per cent surge in sales.

    On the other hand, some sectors witnessed a decline in sales. Sales of wearing apparel dipped by 4.3 per cent, while food, alcoholic drinks and tobacco dropped by 1.5 per cent. Additionally, sales in furniture and fixtures saw a significant decrease of 16.3 per cent, with books, newspapers, stationery and gifts experiencing a 4.7 per cent fall.

    First-Half Overview

    Looking at the bigger picture, retail sales in Hong Kong for the first half of the year showed a downward trend, dropping by 3.3 per cent when compared to the same period last year.

    However, a government spokesperson conveyed optimism, noting that the retail sector has been exhibiting signs of stabilization in recent months. The spokesperson cited several favourable factors contributing to this trend, including the steady rise in employment earnings, a robust stock market, and concerted efforts from the government and businesses to promote tourism. These factors are anticipated to augment consumer sentiment and provide a strong support for the retail sector.

    Questions & Answers

    What was the value of retail sales in June in Hong Kong?
    The value of retail sales in Hong Kong in June was HK$30.1 billion (US$3.8 billion), representing a 0.7 per cent year-on-year increase.

    Which sectors led the growth in Hong Kong’s retail sales in June?
    The sectors of jewellery, watches and clocks, and valuable gifts led the growth in June with a 6.8 per cent increase. Other sectors experiencing growth included medicines and cosmetics, commodities in department stores, and optical shops.

    What are the factors contributing to the stabilization of Hong Kong’s retail sector?
    The stabilization of Hong Kong’s retail sector can be attributed to the continuous increase in employment earnings, a solid stock market performance, and government and business efforts to boost tourism.

  • South Korea’s Retail Sales Surge 7% in May, Signaling Strong Consumer Confidence

    South Korea’s Retail Sales Surge 7% in May, Signaling Strong Consumer Confidence

    South Korea’s retail sector demonstrated remarkable resilience in May 2025, achieving a 7% year-on-year growth, spurred primarily by an ongoing boom in online sales. Data from the Ministry of Trade, Industry and Energy (MOTIE) revealed that this robust performance marks a continued recovery for both digital and traditional retail.

    Online Sales Take the Lead

    The online retail landscape saw a significant surge, with sales climbing by an impressive 13% compared to the same month last year. Meanwhile, the offline segment showed modest growth, with sales up a slight 0.9%, marking a positive turnaround for hypermarkets and department stores following the Seollal holiday season in January.

    Positive Trends in Hypermarkets and Department Stores

    Hypermarkets enjoyed a 0.2% bump in sales, whereas department stores reported a 2.3% increase, driven by high demand for luxury items and an uptick in customer spending during visits. Super supermarkets (SSMs) also continued their winning streak for the third consecutive month, with a 1% growth attributed to a steady flow of shoppers. However, not all segments experienced growth; convenience store sales dipped slightly by 0.2%.

    A Mixed Bag for Offline Goods

    Within the offline categories, food products increased by 1%, while luxury goods, particularly jewelry and watches, saw a remarkable 8.1% rise. But the picture wasn’t entirely rosy—home appliances and cultural items faced a sharp decline of 7.8%, with kids and sports goods decreasing 2.5% and fashion and miscellaneous items falling by 3.7%. If retail were a game of musical chairs, some segments might want to consider making a quick exit.

    Online Retail Remains a Powerhouse

    Online retail retains its status as the primary growth engine, with exceptional gains in services (up 37.3%) and food products (up 18.2%). The rising popularity of food delivery, e-coupons, travel packages, and cultural content significantly bolstered these statistics. Yet, it wouldn’t be the retail world without some hiccups; fashion and clothing sales saw a 4.6% decline, while sports-related items plummeted by a staggering 12.7%, extending a worrying downward trend.

    MOTIE’s analysis is derived from a comprehensive survey of 23 major retailers, encompassing 13 offline businesses—including department stores, hypermarkets, convenience stores, and super supermarkets—alongside 10 online platforms. As South Korea’s retail landscape evolves, it paints a vivid picture of changing consumer preferences and the dynamic interaction between online and offline shopping environments.

    Questions & Answers

    What drove the growth in South Korea’s retail sector in May 2025?
    The 7% year-on-year growth was primarily driven by a significant increase in online sales, which surged by 13% compared to the previous year.

    How did physical stores perform during this period?
    Offline sales saw a modest rise of 0.9%, with department stores and hypermarkets showing positive trends after the Seollal holiday season.

    Which retail categories witnessed the strongest and weakest performances?
    Luxury goods like jewelry and watches experienced an 8.1% increase, while fashion and sports-related items struggled, with declines of 4.6% and 12.7%, respectively.

  • Hong Kong ‘losing its edge’ as China Mainlanders look elsewhere

    Hong Kong ‘losing its edge’ as China Mainlanders look elsewhere

    Growth in overnight Mainland visitors to Hong Kong has slumped to a fraction of last year’s figures.

    Total visitor numbers from China’s Mainland in May rose by five per cent year on year – but it’s the day trippers making the numbers, not the cashed up Chinese staying in Hong Kong hotels and splurging on luxury goods.

    The latest Visitor Arrivals Statistics for May released by Hong Kong Tourism Board show the number of overnight visitor arrivals grew a mere 1.1 per cent when compared to last year’s 6.7 per cent.

    Combined with the retail sales for May released earlier this week – which saw a 4.6 per cent seasonally adjusted increase in spending but a 15 per cent slump in luxury goods sales – the drag from the slowdown in tourist spending at retail level is notable.

    Hunter Williams, a partner with OC&C Strategy Consultants, Greater China, believes Hong Kong is losing its edge to attract tourist money in the future.

    Furthermore, he argues, more Chinese travellers are expected to flush all over the world yet the growth in “per pax” spending is likely to be slower.

    The number of outbound Chinese travellers topped 100 million for the first time last year – and that figure is predicted to double by 2020 at the current annual growth of 33 per cent.

    Williams says the problem for Hong Kong and Macau is that both SARs have lost their competitiveness.

    “Hong Kong and Macau are relative losers in the fight for the Chinese travel dollar. Both are seeing lower tourist arrival numbers and significantly lower “per pax” spending. Attempting to shift from exclusively targeting “high rollers” to competing for “middle class” tourists is likely to prove a painful transition,” he says.

    Group travel is still popular amongst Mainland Chinese and draws from “a seemingly bottomless reservoir of first-time travellers,” but the world is now welcoming greater numbers of independent Chinese travellers.

    “We believe there is no longer a “Chinese traveller” per se, but rather, four segments with distinct shopping behaviour.  OC&C Strategy Consultants defines these segments as first-time “travel tasters,” deal-savvy “savvy shoppers,” “white collars” and the high-spending “new elite.”

    Growth in “per pax” spending is likely to be slower, driven by several factors.

    “Firstly, overseas travel is increasingly democratised and open to middle class Chinese, rather than being the exclusive preserve of the elites. Secondly, reacting to exchange rate changes and cuts in import duties, many luxury brands have lowered domestic prices in China, lessening the incentive to shop abroad.

    “Thirdly, China’s anti-corruption campaign continues and “tigers and flies” alike are rightly wary of flaunting ill-gotten gains.”

    A “wealth effect,” says Williams, due to soaring stock market performance could offset some of these factors or a crash could exacerbate them – but the volatility of China’s equity markets makes such speculation problematic.

    Williams also warns retailers to make sure they appreciate how Chinese consumers almost live their lives on their smartphones.

    “From ordering a taxi (Didi Kuaidi); socialising with friends (WeChat); making discounted reservations for dinner (Dianping); shopping the latest fashions (Taobao and Tmall), and even paying for daily necessities at the local convenience store (Alipay), Chinese live on their phones.”

    He says retailers in destinations preferred by Mainland Chinese should expect greater numbers of Chinese travellers than ever this summer.

    “However, these travellers will spend less and will be more digitally demanding than ever. This can be a challenge for the overseas businesses targeting them, as the digital tools and platforms they are accustomed to using are generally China-only.

    “More and more international brands are active on Chinese social media sites like WeChat, but few have a full, 360-degree digital presence.”

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  • Hong Kong retail sales fall for 14th straight month in April

    Hong Kong retail sales fall for 14th straight month in April

    The continued downtrend in retail sales in Hong Kong marked its 14th consecutive month in April, as per the latest government data. Local consumers have adopted a cautious approach towards spending, and tourists from mainland China have been opening their wallets less frequently. Despite this, the decrease in sales wasn’t as significant as in March.

    In April, retail sales by value decreased by 2.3 per cent year-on-year to HK$28.9 billion (US$3.68 billion). This follows a 3.5 per cent drop in March. In terms of volume, there was a 3.3 per cent decline from the previous year, which is less than the revised 4.7 per cent fall in March.

    Despite an increase in tourists from mainland China, many were day-trippers who did not contribute significantly to retail sales. Furthermore, Hong Kong residents opted to spend more across the border, taking advantage of the strong position of the Hong Kong dollar against the Chinese yuan.

    A government spokesperson from Hong Kong highlighted the ongoing adjustments in consumption patterns and increased competition among businesses. These factors, coupled with an uncertain macroeconomic environment, pose challenges to the retail sector.

    Nonetheless, the spokesperson also noted that government initiatives to promote tourism and major events, along with steady growth in the mainland economy, are expected to boost consumer sentiment.

    The Hong Kong Tourism Board’s data showed that the number of visitors in April was 3.85 million, a 13.5 per cent increase from the same month last year. This compares with 3.82 million in March, 3.67 million in February, and 4.74 million in January.

    There were 2.81 million visitors from mainland China in April, showing a 13.3 per cent rise from a year ago. This is compared to 2.75 million in March, 2.77 million in February, and 3.73 million in January.

    In April, sales of jewellery, watches, clocks, and valuable gifts experienced a 1.7 per cent decline year-on-year, following a 3.4 per cent drop in March.

    Questions & Answers

    How has retail spending in Hong Kong changed in recent months?
    Retail spending in Hong Kong has seen a downtrend for 14 consecutive months as of April. Local consumers have been cautious in their spending, and visitors from mainland China have been spending less.

    How has tourism affected retail spending?
    Even though there has been an increase in tourists from mainland China, many are day-trippers who do not significantly contribute to retail sales. Additionally, Hong Kong residents have been spending more across the border due to the strength of the Hong Kong dollar against the Chinese yuan.

    What factors pose a challenge to the retail sector in Hong Kong?
    The ongoing changes in consumer consumption patterns, increased business competition, and an uncertain macroeconomic environment are all factors that present challenges to the retail sector in Hong Kong.

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  • Bitcoin Broker Teams Up with Sygnum to Boost Retail Sales

    Bitcoin Broker Teams Up with Sygnum to Boost Retail Sales

    Innovative Offering Provides New Liquidity Options for Investors

    Bitcoin broker Relai has announced a new collaboration with Sygnum Bank to launch Bitcoin-backed Lombard loans. This initiative aims to offer private, qualified investors the ability to leverage their Bitcoin holdings for short- to medium-term liquidity without liquidating their assets.

    Unlocking Financial Flexibility for Wealthy Clients

    The new service allows clients to access liquidity in euros or Swiss francs, enabling them to manage their financial needs while maintaining their Bitcoin investments. This offering positions Relai as the first broker in Europe to facilitate Bitcoin-backed loans, marking a significant development in the intersection of cryptocurrency and traditional finance.

    The startup, founded in 2019, emphasized that the newly introduced loans provide high-net-worth clients and small to medium-sized enterprises (SMEs) with enhanced financial flexibility. While specific loan conditions remain undisclosed, the initiative is designed to help clients capitalize on potential price increases in Bitcoin while avoiding potential tax implications from selling their assets.

    A Milestone for Relai’s Growth

    Julian Liniger, CEO and co-founder of Relai, hailed the partnership with Sygnum Bank as a watershed moment for the young company. “Bitcoin-backed loans are a groundbreaking innovation for our high-net-worth clients, as they give them access to cash without having to sell their Bitcoin,” he stated.

    This pioneering offering not only reflects the growing consumer demand for cryptocurrency-based financial products but also underscores the expanding role of digital assets in mainstream finance.

    As the retail sector continues to evolve, Relai’s foray into Bitcoin-backed loans may set a new standard for financial services, particularly for consumers seeking innovative ways to unlock the value of their digital assets. The potential impact on both high-net-worth individuals and the broader retail market cannot be understated, paving the way for more advancements in the world of cryptocurrency and traditional banking.

  • Singapore retail sales down in January

    Singapore retail sales down in January

    Singapore retail sales – after excluding motor vehicles from the data – dropped 2.1 percent year-on-year in January, following the 2.8 percent decrease in December.

    According to the Department of Statistics, January retail sales edged up 0.5 percent on a seasonally adjusted basis compared to the previous month.

    The estimated total retail sales value was SG$3.7 billion (US$2.75 billion), of which 12.9 percent was online.

    There were mixed performances within the retail trade sector, highlighted by an 11.8 percent decline in sales of wearing apparel and footwear. Supermarkets and hypermarkets and recreational goods recorded decreases of 6.5 percent and 4.9 percent, respectively.

    Meanwhile, sales of food and alcohol and watches and jewelry increased by 8.5 percent and 5.3 percent, respectively.

    Sales of food and beverage services fell 5.6 percent in January, following the 0.4 percent growth in December. The lower sales were partly attributed to the Chinese New Year being celebrated at the end of January 2023 rather than in February this year.

    The total sales value of F&B services was estimated at SG$ 942 million (US$700 million), of which 23.1 percent was from online sales.

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  • Hong Kong retail sales growth stalls

    Hong Kong retail sales growth stalls

    Hong Kong retail sales growth stalled in August, down 0.1 percent yearly, following a revised estimated increase of 4.1 percent in July.

    According to the Census and Statistics Department, August’s figures were impacted by a high base compared to a year ago, but for the first eight months of the calendar year, sales are down by 1.5 percent on year.

    Calculated with the impact of price changes removed, August sales were down by 2.9 percent, and July sales were up by 1.1 percent. Sales for the first eight months of the year combined were down by 4.5 percent.

    “Looking ahead, the moderating local epidemic situation, improving labor market conditions and [the government’s] The Consumption Voucher Scheme will continue to support consumption sentiment and demand in the near term, but the increasingly tight financial conditions will pose constraints,” said a government spokesperson. “It is crucial for the community to work in unison with the government to contain the epidemic, to create greater room for the recovery of consumption-related activities.”

    Online sales accounted for 9.1 percent of total turnover in August and were 21.3 percent higher than the same month last year. That followed an increase of 8.4 percent in July, with year-to-date online sales up by 21.7 percent.

    Categories with the largest declines in August were apparel (down by 7.4 percent), shoes and accessories (12.7 percent), and books and stationery (17.4 percent). Categories showing growth included jewelry and watches up by 4.3 percent, and motor vehicles and parts, up by 43.7 percent.

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  • Vietnam national brand value gains 11%

    Vietnam national brand value gains 11%

    Vietnam saw its national brand value increase by 11% this year to $431 billion thanks to its foreign direct investment policies. Its increase of $184 billion year-on-year was the third highest of any country, U.K. consultancy Brand Finance said in a recent release.

    The country went up one place to 32nd, just behind Thailand and the Philippines.

    “The country has gained momentum as an attractive destination for foreign investment thanks to successful fiscal and monetary policies and investments in human capital, but also amid trade disruptions from China’s lockdowns and continued tensions between Beijing and Washington,” the release said.

    Among the 50 most valuable corporate brands in Vietnam, telecommunications giant Viettel led at $8.8 billion, up 44% from 2021. It was followed by another state-owned telecom firm, VNPT, at $2.9 billion. Other places in the top five were claimed by dairy giant Vinamilk, property developer Vinhomes and brewer Sabeco.

    The top sectors in terms of brand value in Vietnam are telecom, banking and food.

    Globally, the U.S. claimed top spot in the national brand list at $26.5 trillion, followed by China, Germany, Japan, and the U.K.

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  • Singapore retail sales continue to recover

    Singapore retail sales continue to recover

    Singapore retail sales continued their rebound in July, rising 18.1 per cent year on year, excluding motor vehicles.

    That followed a 19.9 per cent increase in June, both months reflecting the low base of a year earlier when Covid restrictions on border crossings and retail trading impacted shopping.

    The fastest-growing category was apparel and footwear which surged 68.3 per cent, largely due to handbags and footwear. Sales of food and alcohol, trade through department stores, and sales of watches and jewellery increased by between 41.7 and 53.1 per cent.

    Retail sales (excluding motor vehicles) in July were estimated at S$3.4 billion, of which online sales comprised 14.3 per cent, a similar level to June. Online sales of computer and telecommunications equipment accounted for 49 per cent of the category’s turnover, while 28.9 per cent of furniture and household equipment spending was online, and 14.8 per cent of supermarket sales.

    Meanwhile, sales of food and beverage services grew by 41.9 per cent in July, following June’s 59.1 per cent increase. The significant growth was due to the low base in July last year when restrictions on dining-in at restaurants and cafes were in place.

    Food and beverage service sales reached $939 million in July, of which online ordering accounted for 26.2 per cent.

  • Retail sales in Hong Kong rebound after two months of decline

    Retail sales in Hong Kong rebound after two months of decline

    Hong Kong’s retail sales jumped 11.7% in April from a year earlier, ending two consecutive months of declines, with the rebound helped by a receding COVID pandemic and the disbursement of government’s consumption vouchers.

    The retail sector has been under pressure particularly after the financial hub imposed stringent restrictions to curb the coronavirus, although the government expects the sector to pick up as cases decline and measures are eased.

    Retail sales in April jumped 11.7% from a year earlier to HK$30.2 billion ($3.85 billion), official data released on Wednesday showed. That followed a 13.8% drop in March.

    “The retail sector should continue to recover provided that the local epidemic situation remains stable,” a government spokesman said, adding that a consumption voucher scheme and other government measures would lend more support.

    In volume terms, retail sales in April rose 8.1% from a year earlier, compared with a 16.8% decline in March.

    For the January to April period, the value of retail sales fell 3.1% from the year-ago period while volume dropped 6.1%.

    At the beginning of this year, Hong Kong implemented its strictest anti-virus measures. The Omicron variant triggered a dramatic spike in infections, with businesses hit hard by widespread closures.

    The city’s economy contracted 4% in the first quarter from the same period a year earlier, ending four quarters of recovery.

    The unemployment rate rose to 5.4% in the February-April quarter, the highest since the April-June quarter in 2021.

    The government has revised down Hong Kong’s 2022 economic growth forecast to 1% to 2%, from an earlier 2% to 3.5%.

    Sales of jewellery, watches, clocks and valuable gifts, which before the pandemic relied heavily on tourists from the mainland, rose 13.9% in April following a revised 35.9% drop in March, the data showed. The border with mainland China remains largely closed due to COVID.

    Clothing, footwear and related products increased 1.6% in April against a revised 41.4% drop in March.

    Tourist arrivals in April fell 17.8% from a year earlier to 4,692. That compared with a 73% plunge in March.

    Online retail sales were a bright spot, surging 34.8% year-on-year in April in value terms after a revised 31.2% growth in March.

    Hong Kong eased COVID restrictions further in May as cases eased, reopening beaches and swimming pools, and extending hours for bars, while restaurants are allowed to serve eight people per table, up from four.

  • Retail sales in Singapore surge as border restrictions relaxed

    Retail sales in Singapore surge as border restrictions relaxed

    Retail sales in Singapore surged 17.4 per cent in April (excluding motor vehicles), faster than the rate of 13.6 per cent in March.

    Statistics Singapore said the increase was driven by sales of apparel, food & liquor – up by 46.6 per cent year on year – and improved supermarket turnover.

    Retail sales in Singapore, excluding motor vehicles, were estimated at S$3.3 billion (US$2.4 billion) in April, with online retail sales accounting for 14.2 per cent of that. Online sales of computer & telecommunications equipment comprised 48.2 per cent of the category’s turnover, while 28.3 per cent of furniture & household equipment was sold online.

    Statistics Singapore said the growth in apparel sales was due to increased demand for bags and footwear, partly fuelled by increased tourist spending as border restrictions were eased. Sales of food & alcohol, in department stores, and of watches & jewellery, increased by between 28.4 and 35.6 per cent.

    However, sales at mini-marts & convenience stores fell by 5.5 per cent.

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  • Strong end to the year for Singapore retail sales

    Strong end to the year for Singapore retail sales

    Retail sales in Singapore will continue to see modest growth in December as well as in the first quarter of 2022 on the back of increased mobility, according to a report by RHB.

    RHB said retail sales in Singapore have been on an uptrend since July based on the three-month moving average.

    “Retail sales are anticipated to rise in the year ahead as domestic demand continues to recover amid the pick-up in overall business activities. This is also aided by the expected improvement in the labor market in 2022 as the unemployment rate steadily falls, with the latest monthly print of 2.6% for October,” RHB said.

    It said that fluctuations in sequential readings may occur due to year-end demand increase, particularly on spending in the discretionary industries.

    The Department of Statistics Singapore reported that retail sales for November 2021 inched up 1.9% year-on-year (YoY), reaching a value of $3.7b, whilst food and beverage sales climber 0.6% YoY in November 2021 reaching $706m.

    Travel restrictions in Singapore are also expected to occur gradually in 2022 which will increase visitor arrivals and support spending on retail sales especially in the second half of the year, RHB said.

    However, it said that the new strains of the coronavirus may slightly delay the re-opening of borders and easing of restrictions.

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  • Retail sales in Hong Kong continue to recover slowly

    Retail sales in Hong Kong continue to recover slowly

    Hong Kong’s economy lost some momentum in the second quarter but still expanded by 7.5% from a year earlier, as domestic and global activity continued to recover from last year’s pandemic-induced slump.

    Despite some slowdown in robust export growth, the government said the city’s economic recovery remains on track as global demand picks up and local coronavirus fears ease.

    The preliminary gross domestic product (GDP) estimate released on Friday compares with a revised growth rate of 8% in the first quarter and forecasts of 8.4% by DBS and 8.5% by ING.

    On a quarterly basis, the economy contracted by a seasonally adjusted 1% in April-June, its first decline since the second quarter of 2020. That compared with a revised 5.5% growth in the previous quarter.

    “The global economic recovery should continue to support Hong Kong’s exports of goods in the near term, though there may be some moderation from the exceptionally strong performance in the first half of 2021,” a government spokesman said in a statement along with the GDP figures.

    “Exports of services should likewise sustain growth,” the spokesman said, adding that a stabilized pandemic situation locally and a consumption voucher scheme will help stimulate consumer demand.

    For the first half of 2021, the economy grew by 7.8% over a year earlier. The government maintained its full-year growth forecast at 3.5%-5.5%.

    Analysts caution, however, that the recovery will be uneven. While consumer spending is improving as coronavirus worries ebb, international travel restrictions will continue to weigh on tourism and related retail and services sectors.

    The trade-reliant city is also benefiting from mainland China’s swift recovery from the COVID-19 crisis, though China’s growth rates are slowly returning to more normal levels.

    Hong Kong’s economy fell into its longest recession on record in early 2019, weighed down by huge anti-government protests followed by the pandemic in 2020.

    Seasonally adjusted unemployment slipped to 5.5% in April-June, from 6% in March-May and 6.4% in February-April. Exports jumped 33% in June, their eighth straight month of growth.

    Retail sales rose 10.5% in May from a year earlier, the fourth consecutive monthly gain, but growth lagged pre-pandemic levels as inbound tourism is virtually non-existent.

    Hong Kong reported two new imported COVID-19 cases on Friday, with no local community infections recorded in over 50 consecutive days.

    The government has urged more people to get vaccinated to pave the way for a reopening and broader based economic recovery. About 35% of the population has received the recommended two doses and 47% have had their first dose.

  • China’s retail sales record double-digit growth

    China’s retail sales record double-digit growth

    China released economic data for July that showed slower-than-expected growth as the world’s second-largest economy battled floods and a resurgence of Covid-19.

    The slowdown was particularly apparent in individual Chinese consumer spending, despite authorities’ efforts to build up consumption as a driver of economic growth.

    The data showed consumers cut back on spending across the board, whether it was on big-ticket items like cars or lower-cost products like cosmetics that can be bought through online e-commerce platforms.

    Retail sales rose by 8.5% in July from a year ago, lower than the forecast 11.5%, according to analysts polled by Reuters. Auto-related sales, the largest component of retail sales by value, was the only category to decline in July, down 1.8% year-on-year.

    The cosmetics sector was one of the slowest-growing categories, and sales grew just 2.8% in July from a year ago, versus growth of 13.5% in June.

    Online sales of physical consumer goods rose by 4.4% in July, far below an average of about 21% for the past five years, according to CNBC calculations of official data.

    Bruce Pang, head of macro and strategy research at China Renaissance, attributed the sharp drop in online sales to massive shopping promotions in June, which were followed by logistics disruptions amid Covid-19 travel restrictions, floods and typhoons in July.

    E-commerce giants Alibaba and JD.com handled a record $136.51 billion of sales during the June 18 shopping event, known as “618.” China’s other major shopping festival of the year falls on Nov. 11.

    Outside of consumption, China’s manufacturing sector also grew more slowly than expected.

    Industrial production grew by 6.4%, also below expectations of a 7.8% year-on-year increase in July, according to the Reuters poll.

    Fixed asset investment for the first seven months of the year rose by 10.3%, below the forecast of 11.3% year-on-year growth for the January to July period, according to Reuters.

    The National Bureau of Statistics noted “the impact of multiple factors including the growing external uncertainties and the domestic COVID-19 epidemic and flooding situation,” according to a release. The bureau added that the “economic recovery is still unstable and uneven.”

    On consumption, the bureau’s spokesman Fu Linghui said during a press conference that Chinese willingness to spend is increasing since spending per capita grew faster than that of disposable income in the first half of the year — up 17.4% and 12%, respectively.

    The country added 1.24 million new urban jobs in July, on track to reach Beijing’s target of creating more than 11 million new urban jobs this year.

    However, the unemployment rate in cities ticked higher to 5.1% in July, up from 5% the prior month. The unemployment rate for those 16- to 24-years-old remained far higher, rising to 16.2% from 15.4% in June.

    Economists have cut their China GDP forecasts given the latest wave of travel restrictions and residential community lockdowns in the wake of the spread in the last two months of the highly contagious Delta variant within the country.

    Goldman Sachs expects 8.3% growth this year, down from 8.6% previously, according to an Aug. 8 note.
    Nomura predicts 8.2% GDP growth for the year, down from 8.9%, according to an Aug. 3 note.

    The official growth target is lower, at over 6%.

    Although the number of new Covid cases is low compared with other countries, the economic impact could be greater since China has taken a “zero tolerance” approach. Last week, authorities shut a terminal of the world’s third-busiest port after one worker was infected.

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  • Singapore retail sales growth halts in August

    Singapore retail sales growth halts in August

    Singapore retail sales growth – excluding motor vehicles – remained static in August, following July’s 2-per-cent increase.

    Of the estimated $2.9 billion in retail sales (excluding vehicles), online sales accounted for 16.4 percent, a similar proportion as in July. By category, the strongest online was computer & telecommunications equipment, with 56.5 percent of turnover online rather than in-store. Online accounted for 31.5 percent of furniture & household goods sales and 14 percent of supermarkets & hypermarkets.

    In terms of overall category sales, most sectors recorded year-on-year declines in sales during August. Optical goods & books were worst affected – down by 9.6 percent – followed by department store turnover, down by 8.5 percent.  Sales through petrol service stations and of watches & jewelry rose by 23.7 percent and 7.9 percent respectively, driven by higher petrol prices and greater demand for watches, said Statistics Singapore.

    Meanwhile, sales of food & beverage services fell 6.7 percent in August compared to the 6-per-cent decline in July, due mainly to stricter dine-in restrictions this year.

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