Hong Kong retail sales in March recorded their worst performance in the history of the MasterCard SpendingPulse™ Hong Kong Report. Overall retail sales in Hong Kong contracted by 18.5 percent year-on-year, reflecting the deepest decline since 2014, the latest MasterCard SpendingPulse™ Hong Kong Report revealed.
Clothing and jewellery sales in March dropped by more than total retail sales, while only grocery outperformed overall retail sales. The March results brought the year-on-year Q1 retail sales decline to 11.7 percent from the same period in 2015.
Sarah Quinlan, senior vice president, market insights for MasterCard Advisors, said, “As a result of the contraction in spending from Mainland China tourists and in discretionary spending by domestic Hong Kong consumers, we observed the deepest decline of retail sales in the history of SpendingPulse in Hong Kong this month. The early Easter holiday did nothing to stimulate spending as consumer confidence remains subdued.”
“Overall our outlook for Hong Kong retail sales remains weak as the slowdown in spending from Mainland China continues to negatively impact the Hong Kong retail economy,” added Quinlan.
Analyzing local retail performance and spending, the macroeconomic report uses aggregated and anonymous transaction data, along with all other payment forms including cash, to offer insight into consumer spending trends, providing an early overview of market indices to help retailers, investors, card issuers, banks and government agencies in their decision-making processes.
Launched by MasterCard Advisors, a unit of MasterCard, the SpendingPulse report is available to subscribers the third week of every month and shares quality insights on consumer spending. The monthly report also includes an overall retail sales and price index, so that subscribers can understand whether spending growth is truly being driven by increased shopping or by inflation or increased promotions.
SpendingPulse is currently available to subscribers in Australia, Brazil, Canada, Hong Kong, Japan, the United Kingdom, and the United States, and is delivered ahead of retail spending figures provided by other sources. It is one of the most quoted reports on macroeconomic trends in the US and is often used as a source of reference by major international news outlets.
SpendingPulse™ Hong Kong Methodology
MasterCard analyzes the transactions processed by the MasterCard Hong Kong payments network and uses statistical models which take into account the trends of other payment methods (cash) to produce accurate and efficient reports. SpendingPulse Hong Kong is based on a robust data sample drawn from all businesses accredited by MasterCard in Hong Kong plus other additional data sources.