HONG Kong's retail-sales growth accelerated to the fastest pace in three months as low unemployment supported household spending and the city attracted more tourists.
Retail sales climbed 13.8 percent in July from a year earlier to HK$24.2 billion (US$3.1 billion), the government said yesterday, after gaining a revised 11.7 percent in June.
The lowest jobless rate in a decade and an increase in the number of tourists traveling to Hong Kong from the mainland helped to support sales growth. Rising prices and this year's 25 percent decline in the Hang Seng Index of stocks remain drags on consumer confidence and spending, Bloomberg News said.
In July, Hong Kong Chief Executive Donald Tsang announced HK$11 billion of inflation relief, including electricity subsidies and a food allowance for the poor.
In February, Financial Secretary John Tsang cut salary and profit taxes, scrapped beer and wine duties and waived property rates.
Unemployment in the city of 7 million people fell to 3.2 percent in the three months through July. Visitor arrivals climbed 10.4 percent in July from a year earlier, the fastest pace in three months.
By volume, retail sales increased 6.6 percent in July from a year earlier after rising 4.1 percent in June.