Overall retail sales in Hong Kong grew 5.9% in October to HK$ 39.7 billion, the 20th consecutive month of growth, driven by improved consumer sentiment on the back of continued income growth as well as a rise in the number of tourist arrivals, according to information released recently by the Census and Statistics Department Hong Kong Special Administrative Region.

In volume terms, retail sales rose 5.2%, the data showed. The rise both in value and volume, terms, was higher than in September when the region was badly hit by Typhoon Manghkut, impacting both retail sales and visitor arrivals. In September, retail sales rose only 2.4% in value terms and 1.9% in volume terms.

For the first ten months of the year, retail sales were up 10.6% in value and 9.1% in volume terms respectively.

Sales of jewellery, watches, clocks and valuable gifts increased 3.3% during October.

Tourist arrivals were also up during the month at 5.88 million, a rise of 11.5% year-on-year, figures put out by the Tourism Board indicate. Of this, mainland visitors increased by 15.4%, making up 79.1% of all arrivals.

The mood in the retail sector however, still remains muted, largely on account of the possible impact of the US-China trade war and a weakness in certain asset markets.

A poll taken by the Hong Kong Retail Management Association among its members indicated that most companies were cautious about the prospects of growth in the coming months, and the association expects a high single digit growth for retail sales in 2018 as a whole.