Hong Kong’s retail sales rose for the 15th straight month in July, as continued economic growth supported local consumer sentiment and a string of major events drew visitors to the city, though the pace of expansion eased slightly from the previous months.

The value of total retail sales increased 4.5 percent from a year earlier to HK$31 billion ($3.95 billion), the Census and Statistics Department said on Monday, slowing from a 4.6 percent year-on-year rise in June. In the first seven months of 2026, retail sales by value were up 8.9 percent from the same period last year.

Online sales accounted for 9.1 percent of total retail sales in July. The provisional estimate for online sales value rose 9.5 percent on a yearly basis to HK$2.8 billion.

Among major retail categories, sales of jewelry, watches and clocks, and valuable gifts recorded the sharpest increase, jumping nearly 20 percent from a year earlier.

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A HKSAR government spokesperson said “retail sales growth momentum remained resilient in July”, while the stronger rise in online sales pointed to the continued expansion of digital consumption.

Looking ahead, “continued economic expansion, rising household incomes, and stable labor market conditions should bolster consumer sentiment”, the spokesperson said.

A series of upcoming mega events is also expected to sustain growth in visitor arrivals and provide further support to retailers, the spokesperson added, while cautioning that external headwinds continue to evolve.

According to the HKSAR government, the city’s real GDP grew 5.1 percent year-on-year in the first half, marking its strongest half-year performance in nearly five years.

Financial Secretary Paul Chan Mo-po has also said Hong Kong will host more than 100 mega events in the second half of the year, including the HKTDC Food Expo, fireworks displays and the Cyclothon. The events are expected to attract more than 1.85 million visitors and generate about HK$5.9 billion in spending, he said.

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However, Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association, said that while retail sales in July maintained a positive trajectory, the growth rate has narrowed and the HK$31 billion in sales value was the lowest monthly level so far this year.

Tse attributed the slowdown partly to poor weather in July, noting that it rained more than 20 days, which affected visitor arrivals. Moreover, many Hong Kong residents traveled outside the city during the summer holiday, weighing on local consumption, she said.

According to the association’s latest monthly survey, which covers more than 3,000 stores and 75,000 employees, about 60 percent of retailers expected sales in August to rise from a year earlier, while nearly 20 percent projected sales to be flat. Cosmetics retailers are among the most upbeat, forecasting mid-double-digit growth.

Tse said rainfall eased in August compared with July, although temperatures remained high, which will benefit weather-related retail categories such as electrical appliances.

Some surveyed retailers also reported solid foot traffic in tourist districts including Tsim Sha Tsui and Mong Kok, but said visitors’ spending power is not strong.

Contact the writer at irisli@chinadailyhk.com