Hong Kong’s retail sales growth likely to have accelerated slightly in October

Hong Kong’s October retail sales data is set to release by the end of this week. According to a DBS Bank research report, retail sales are likely to have risen 5 percent in the month on a year-on-year basis in terms of value and 2.5 percent in volume terms. This would be a rise from September’s 2.4 percent print.

Even if local consumption sentiments are underpinned by increasing wages of low-skilled workers in the midst of full employment, the outlook is hinged crucially on the equity market correction brought by a deepening Sino-US trade ward.

“Looking forward, tourist spending is also likely to moderate due to a weakening CNY that constrains the purchasing power of Chinese visitors”, added DBS Bank.