Retail sales in Hong Kong during the month of October 2019 declined by a massive 24.3% in value, surpassing the 22.9% fall reported in August, which itself was nearly double the drop in July, data released recently by the HK Census and Statistics Department revealed.

To put that figure further in perspective – the 11.4% fall in sales recorded in July was at that time reported to be the steepest monthly drop in more than three years.

Sales have now contracted for nine consecutive months, battered by sharp falls in tourist traffic as well as depressed consumer sentiment, both closely related to the ongoing protests that have more recently seen an increase in violence and clashes with the police.

Government statistics show that retail sales across all categories during the month stood at HK$ 30.1 billion. In volume terms the fall was even bigger, 26.2% during the month, the department reported, once again ahead of the 25.2% reported in August, and significantly above the 13.1% decline in July, also a record decrease at that time.

Retail sales over the first ten months of the year are now down by 9.0% in value and by 10% in volume, the data showed.

“Ending the violence in the local social incidents and restoring social order are crucial to the creation of an environment for the retail business to recover,” a government spokesperson said.

The government also said in an official statement that it will closely monitor the situation and its repercussions on the labour market and the overall economy.

During the month of October, the sales of jewellery, watches, clocks and valuable gifts fell by a huge 42.9%, slightly more the 40.8% drop reported in September. Other categories such as electric and other consumer goods (-16%), apparel (-39.6%) and commodities in departmental stores (-31.1%) also witnessed dramatic drops.

The impact of the protests is further accentuated by the uncertainty associated with the Sino-U.S. trade war and the slowdown in the Chinese economy.

Tourist traffic to the city dropped by 43.7% in October, with the fall in numbers from Mainland China crossing 45%%. Over the first ten months, tourist numbers are down by 4.7% overall and 4.4% for visitors from the Mainland, who constitute over 80% of the overall footfalls from outside.

The Hong Kong Retail Management Association (HKRMA) also said its members now expect that the overall decline in retail sales during 2019 would be in low double digit figures.