Consumer spending lost momentum across several discretionary categories, while food-related sales improved and monthly retail activity reversed after a strong May increase.
Retail sales in Hong Kong rose 2.3% year on year in June 2026, slowing from 4.8% in May and marking the weakest annual growth since July 2025. The deceleration was driven by softer gains in several major categories, including clothing, footwear and allied products, consumer durable goods, jewellery, watches and clocks, valuable gifts, and other consumer goods. Department store sales also turned negative after expanding in the previous month. Some areas were more resilient, with sales of food, alcoholic drinks and tobacco returning to growth, while declines in supermarkets and fuels moderated slightly. On a monthly basis, retail sales fell 6.8%, reversing May's 7.3% increase, which had been the strongest reading in seven months.