Hong Kong retail sales rise 4.5% in July driven by luxury goods

Hong Kong’s retail sector continues its expansion, marking 15 consecutive months of growth. In July, retail sales rose 4.5% year-on-year to $3.96 billion. This growth was largely driven by the jewellery, watches, and clocks category, which saw a 19.7% increase. Other notable gains included electrical goods (+11.5%) and consumer goods (+10.5%), while online retail sales grew by 9.5%.

Analysts describe the current economic rebound as a ‘flight to quality,’ noting that high-end consumption is a primary driver of the recovery. In the first half of 2026, the economy grew by 5.1% compared to the same period in 2025, representing the strongest half-yearly performance in nearly five years. This surge in luxury spending has also provided relief to the real estate sector, benefiting property owners exposed to high-end segments.

Despite the overall growth, some sectors experienced declines, including motor vehicles and parts (-18.2%), fuel (-18%), and Chinese drugs and herbs (-13.7%).