Retail sales in Hong Kong grew 1.8% year-on-year in July, marking the third consecutive month of gains, according to government data released on Monday. Authorities expect consumer sentiment to remain stable.

Sales reached HK$29.7 billion ($3.8 billion), up 0.7% from June. In volume terms, retail sales increased 1% in July, compared to a 0.3% decline in the previous month.

However, total retail sales for the first seven months of 2025 declined by 2.6% in value and 4.0% in volume compared to the same period last year.

A government spokesperson said, “The government’s proactive efforts in promoting tourism and mega events will also benefit retail businesses.”

Tourism continued to rebound, with 4.39 million visitors arriving in July, a 12% increase year-on-year, according to the Hong Kong Tourism Board. That compared to 3.48 million in June, 4.08 million in May and 3.85 million in April.

Mainland Chinese tourists accounted for 3.51 million of July’s arrivals, up 11.8% year-on-year. This compared to 2.61 million in June, 3.12 million in May and 2.81 million in April.

However, many of these visits were day trips, limiting their spending impact. At the same time, local residents continued to shop across the border, taking advantage of the Hong Kong dollar’s strength against the Chinese yuan.

In July, sales of jewellery, watches, clocks and valuable gifts climbed 9.4% compared to the same month last year, building on June’s 6.9% rise.

Sales of clothing, footwear, and related items increased slightly, up 0.1% year-over-year in July, recovering from a 4.6% decline in June.

($1 = 7.8113 Hong Kong dollars)