Hong Kong Jewelry Sales Sluggish in June

RAPAPORT... Hong Kong's hard-luxury sales grew at a more moderate pace in June as the health situation deteriorated and interest rates climbed.Sales of jewelry, watches, clocks and valuable gifts rose 2.3% year on year to HKD 3.39 billion ($431.2 million) for the month, the municipality's Census and Statistics Department reported Tuesday. While sales increased, June's figure is well below May's 8% jump and April's 14% surge.Sales in all retail categories fell 1.2% to HKD 27.73 billion ($3.53 billion)."Retail sales performance improved in the second quarter, with the value of retail sales rebounding sharply from the first quarter and reverting to mild year-on-year growth," a government spokesperson said. "Yet the momentum softened in the latter part of the quarter alongside the increased number of local Covid-19 cases and sharp interest-rate hikes by many major central banks."In the first six months of the year, sales of jewelry, watches, clocks and valuable gifts slid 7% to HKD 17.45 billion ($2.22 billion). Proceeds from all retail segments slipped 2.6% to HKD 169.87 billion ($21.64 billion).Government-stimulus vouchers worth HKD 5,000 ($637) boosted results earlier this year, most notably in April. The government will issue a second installment for the same amount in August."The upcoming disbursement of [the second set of] vouchers will help support consumption demand, but retail-sales performance down the road will also be dependent on how the local epidemic evolves and how the tighter financial conditions affect consumers' spending power and sentiment," the spokesperson added.Image: A shopping district in Hong Kong. (Shutterstock)